Donald Trump's tweets rock stock markets. At the halfway point, the European stock exchanges lost about two points. Piazza Affari falls by 2.09% around 21.300 points. Paris -2,04%, Frankfurt -1,99%. London closed for public holidays. Wall Street futures fell 1,8% on the Dow Jones to 2,2% on the Nasdaq before opening. The reaction of the markets follows the plunge of the Chinese stock markets: the CSI 300 index of the Shanghai and Shenzen stock markets closed down by 5,8%. Over the weekend, the US president, complaining about the slow progress of the tariff negotiations, threatened an increase in tariffs, from 10% to 25%, on Chinese goods worth 200 billion dollars plus other measures for 325 billion.
Furious reactions are coming from Beijing. The The Wall Street Journal wrote on Sunday that China is considering breaking off the talks, destined to reopen on Wednesday in Washington, with what until a few hours ago was considered only the last formality before the signing ceremony. The delegation of Chinese negotiators could stay at home. On Monday morning, the South China Morning Post reports that Chinese Vice Premier Liu He, the head of the Chinese delegation, will go to Washington this week, but will leave two or three days later than scheduled.
Immediate change of mood of the operators. The Sentix index on European confidence has aged in just a few hours, which this morning signaled a great leap forward in confidence (+5,3 from -0,3 points in April) even if many traders think that Trump's tightening is just a tactical maneuver, favored by the excellent state of health of the stars and stripes economy.
In the meantime though the race for safe havens has restarted. The German Bund trades at zero percent yield, up from +0,02% at Friday's close. Gold up 0,2% to $1.282. Yen strengthening against other currencies. The euro-dollar cross is at 1,119 (-0,1%).
The BTP trades at a yield of 2,58%, from 2,55%. The wait for the publication of the EU estimates in the spring, scheduled for tomorrow, weighs heavily.
Brent oil down 0,9% to $70,2 a barrel, but recovering from the lows of the last month and a half marked at the opening at $68,80. Down Eni -2%., Saipem -3% and Tenaris -2,6%.
The 40 blue chips of Milan are all in red. Technological and automotive sectors suffer in particular on the stock market.
Stmicroelectronics loses 4,4%. LStoxx index of the auto sector falls by 3,2%. All 16 business areas related to the automotive industry are in red. The big Germans lose their shots: BMW -3,3%. Daimler -3,8%. Volkswagen does worse -4,3%. In Miano Fiat Chrysler, which closed the dieselgate dispute with the US authorities. Limits damage to – 2,8%. Also in the red are Cnh Industrial -3,8% and Ferrari -2,5%. Brembo-3%. The board of directors has appointed the new CEO, he is Daniele Schillaci, former manager of Nissan.
The banks are also weak as they await the sector's quarterly reports. Unicredit -2,7%. . In Luxury, Ferragamo -3,3%. Moncler-2%. Limit damage Tim -1%. According to what was reported by Repubblica on Sunday, the company's advisors suggest a merger by incorporation of Open Fiber into Telecom, an idea that could have the support of Vivendi, Elliott and Cdp. Among the few positive notes purchases continue on Safilo +2%.
