Piazza Affari closes in the black jersey and leaves 2,02% on the field, dropping to 21.673 points, with all the blue chips in red apart from Tenaris, which remains flat; especially cars and banks suffer. In particular, Fiat falls below 17 euros per share (16,908), -4,17%, to its lowest level for about two months. A session to forget also for bonds: the spread between Italian and German ten-year bonds rises by 11,31%, reaching 242.60 basis points, while the yield rises to 2,76%.
The decline is generalized across all European lists: Frankfurt -1,44%, Paris -1,05%, Madrid -0,83%, London -0,93%, Zurich -1,11%. The selling intensifies after the opening of Wall Street, which is currently traveling down. The climate of uncertainty stems from the escalation in the trade war between the US and China which is starting to take its first victims, with Daimler (-4,29% in Frankfurt) today launching the profit warning, dragging with it auto sector stocks. Attention is also directed to the OPEC meeting in Vienna, which ends tomorrow, while oil, like Brent, recovers from the lows, but remains down, -1,65%, 73,51 dollars a barrel.
In the US, the lower risk appetite favors government bonds, which are on the rise. The 2,912-year bond sees yields – which move inversely to prices – fall to 2,928% from yesterday's XNUMX%. On the Italian map, however, after an alarm from the Financial Times, the appointment of two "Eurosceptics", Alberto Bagnai and Claudio Borghi, of the League, to the presidency respectively of the Finance commission of the Senate and the Budget of the Chamber weighs heavily. Furthermore, the threat by Interior Minister Matteo Salvini to cut the contribution to the EU budget in the absence of aid for immigration and the desire to dismantle the Fornero reform within the year, with inevitable consequences on the public finances, would not have been appreciated.
“The euro is not in discussion”, reassured Economy Minister Giovanni Tria from Luxembourg, but Italian stocks are unable to reverse course. “Traders – writes Reuters – speak of a market with raw nerves, particularly sensitive and ready to interpret the succession of events and individual statements in a bearish key”. There are too many geopolitical fronts open to contain volatility, starting with that of migrants. However, today Angela Merkel reassured the Italian premier Conte in view of Sunday's summit on the issue, stating that Italy will be listened to and that the EU draft released yesterday has already been shelved. Tomorrow the EU countermeasures to the US duties on steel and aluminium, also imposed on imports from the Union, will come into force.
The euro recovered from the lows of the day and returned to the 1,16 area against the dollar. The pound appreciated (+0,6% against the greenback), after the BoE meeting which left rates unchanged. However, rather restrictive tones emerged from the board, with 3 members intending to immediately increase the cost of money and the chief economist on this line.
In Piazza Affari the most penalized banks are Ubi -3,74% and Unicredit -3,24%. In the other sectors, Prysmian -3,93% and Ferragamo -3,12% remain down, which does not stop the bleeding after yesterday's crash. Italagas is also bad -3,63%. They limit Moncler damages -0,18%; Atlantia -0,43%; Cnh -0,48%; Mediaset -0,7%. To find a positive sign you have to leave the main list. Well Ovs, +6,25%, rewarded by the market with the accounts for the first quarter. Mondadori shines on the Star +5,91%.
