The fear that the economic damage from the pandemic will still be felt for a long time and the observations of the central banks are holding back the markets, while the weekly claims of the unemployment benefits in the United States are back above the million and confirm that a stable recovery is still far away. The European lists close in the red, even if the technological giants of Wall Street know no crisis and Apple, which yesterday touched 468,65 dollars for the first time, pushing capitalization beyond 2.000 billion, is currently trading higher above that threshold.
Piazza Affari loses 1,44%, stopping at 19.766 points, with banks, industrial and oil stocks for sale. Pharmaceutical stocks, Diasorin +0,43% and Recordati +0,13%, are saved. Ferrari floats +0,09%. The script is similar to Frankfurt -1,2%, Paris -1,3%, Madrid -1,4%, London -1,6%.
The start was negative in New York, but after the first hours of trading the movement is recovering. The S&P 500 is positive, although the S&P 1500 airlines index fell after American Airlines said it would suspend flights to 15 US airports in October as demand remains low. The Nasdaq is even in the record zone. We move between conflicting feelings. Hope for a resumption of US-China talks, fears about the prospects of the pandemic and disappointment from central banks.
Yesterday the US stock market, which ran for most of the session, changed sign towards the end after the publication of the minutes of the Federal Reserve meeting of 28-29 July. According to many members of the FOMC, "the current crisis will weigh heavily on economic activity, employment and inflation in the short term, posing considerable risks to the medium-term economic outlook". There is therefore a need for more aid for families and businesses, which Congress however failed to approve due to the distance of views between Republicans and Democrats. On the other hand, today, the minutes of the ECB relating to the meeting of 15-16 July state that the conditions of the financial markets "continued to normalize", but “they remain stiffer and more fragile than before the pandemic”.
"There were further gains in the equity market and a tightening of bond spreads, partly offset by an appreciation of the euro." The calm of the financial markets "may be linked to the expectation of a prolongation of the support measures and policies", but "the recent positive developments of the markets are not fully supported by macroeconomic data and could be based on overly optimistic expectations on the emergency of the European Council and on the progress in the development of a vaccine”.
On the currency market the euro is recovering against the dollar at 1,185, with the greenback suffering from unemployment data. Claims for benefits last week came in at 1,106 million, versus expectations for 923.000. The one million threshold, never reached before the Covid crisis, had been exceeded for 20 consecutive weeks, before falling in the week ending 8 August.
Oil is weak, weakened by fears of a decline in demand amid oversupply. Brent loses 1,28% and trades at 44,79 dollars a barrel. Spot gold was up 0,6% to $1942,07 an ounce, but far from the $2000 it passed a while ago. Dusted silver: +1,38%, $27,094. On the main stock exchange listed on Piazza Affari, the greatest losses are for Atlantia -3,37%; Cnh -2,64%; Pirelli -2,3%; Buzzi -2,4%; Italgas -2,56%.
Banks' declines are led by Mediobanca -2,25% and Banco Bpm, -2,22%, following recent gains. Among the oil companies, the results of the session of Eni -2,37% and Tenaris -2,21% are heavy. On the secondary the spread is slightly up at 141 basis, at the end of a session with few volumes. The Italian 0,92-year yield falls slightly to 0,50%. Better the Bund, -XNUMX%.
