Recession scares the euro going below parity with the dollar, while the interruptions in gas supplies from Russia send the continental price lists into a tailspin. The cocktail results in a sitting in red for European markets and in a negative start for New York (Nasdaq -2,1%), waiting to see what central bankers say at the Jackson Hole symposium on Thursday.
Piazza Affari loses 1,64% and retreats to 22.165 basis points. Risk aversion also affects government bonds and the spread it widens to 229 basis points (+1,37%), while yields rise: the ten-year BTP is at 3,58% and the Bund with the same duration at 1,29%.
In the rest of Euroland, Frankfurt is the worst place with a loss of 2,33%, followed by Paris -1,8% Amsterdam -1,18% Madrid -0,63%. Off the bat London limits damage to 0,21%.
The dollar continues to run on the currency market and the euro looks increasingly fragile, currently trading below parity at 0,993 (-1%).
The energy crisis alarms the Stock Exchanges
La energy crisis frightens the markets, above all due to interruptions in supplies from Moscow to Europe, while the end of the war between Russia and Ukraine is not in sight, with tension skyrocketing after the attack in which it fell victim Darya Dugina, daughter of Alexander Dugin, an ideologue very close to Putin.
Il gas price started to rise again this morning (to then fall back) following the news that Russia, at the end of August, will interrupt supplies to Europe through the Nord Stream 1 pipeline for three days, a move that greatly worries the region engaged in storage in sight of winter.
The strength of the greenback instead weighs on the Petroleum, alarmed by the risk of a weakening of the global economy due to the forthcoming interest rate hikes by central banks, especially the Fed and the ECB. Brent crude trades down 2,9% to 93,91 dollars a barrel.
Nagel is hawkish, despite the risks of a recession starting in Germany
The storm that is hitting Europe seems truly perfect, with ever-higher energy costs, gas supplies at risk, a probable recession and the ECB which must intervene on the cost of money to curb inflation of which the peak is not visible for now.
In the eye of the storm is Germany, the first economy of the block, but Joachim Nagel, president of the Bundesbank, in an interview with Rheinische Post he confirms himself as the king of the hawks and says that we must continue to raise rates in the eurozone despite "a German recession is increasingly probable."
Currently – he writes Reuters – markets expect a 60 basis point hike for September (by the ECB) and overall moves for 130 basis points for the remainder of the year.
Tomorrow, the data on the August PMI from the bloc will be very important to measure the fever in the euro zone economy. The minutes of the last Eurotower political meeting will be published on Thursday.
Piazza Affari in red with cars and banks
In Piazza Affari the best-selling sectors include cars and banks.
After the recovery of the past few weeks (with the exception of the last eighth, which was already negative) they record substantial losses in the four-wheeler stellantis -4,1% Pirelli -3,52% Iveco -3,7%. Among the financial stocks the worst are Unicredit -3,33% Bpm bank -3,35% Bper -3,34% Understanding -3,09%. Ps reaches an all-time low, -5,52% (0,38 euro per share) in a particularly delicate phase of its life, while preparing to face the necessary capital increase of 2,5 billion which risks finding little support on the market .
The worst blue chip of the day is Saipem, -56,04%, in turn resulting from a colossal capital increase and in an oil sector weakened by crude oil sales.
It's against the trend Eni, +1,61%, supported by the discovery of a gas field off the coast of Cyprus.
Sales continue on Telecom -4,35% and falls heavily Moncler -4,56%, always very attentive to China. Paradoxically, the new cut in Beijing's reference rates is worrying since it is read as a sign of the difficulties of the property market in the People's Republic.
Pharma and utilities defend themselves: Recordati + 1,66% Italgas + 0,98% Diasorin + 0,92% Snam + 1,34% Terna + 1,11%.
