Europe also pays a high price to the historic oil meltdown Texan crashed below zero on Monday. The Stock Exchanges of the Old Continent advance in red: Business Square, which loses 1,7%, is among the least worst. Paris e Frankfurt drop by more than 2%, London (-1,79%) And Madrid (-1,5%).
After the deadline for delivery at the end of May, the technical origin of the landslide on Monday, the future of Petroleum WTI for delivery in June, what should indicate the price of "true" oil right now, is down 2% to $20. Brent limits the decline to 22 dollars a barrel: -12%. Wall Street futures are negative (-0,87% the S&P500).
Yesterday's negative record is also explained by the fact that WTI rules provide for the physical delivery of oil at the expiry of the contract, therefore large investors must sell the contract before it expires (scheduled for today). Hence, given the absence of demand and the saturation of deposits, it has caused an unprecedented phenomenon. “The holders of futures expiring in May have paid for someone to take their positions before expiry – explains Goldman Sachs – “to avoid having the crude oil physically delivered next month, when the warehouse capacity will have to be freed up”.
In Piazza Affari it loses its shots Eni -4,3%. Tenaris -3%. Saipem -4,5%.
In this context it is not easy to identify positive signs. One comes from Germany. The Zew index, although falling in April, signals an unexpected rebound in business confidence for the third quarter.
In anticipation of the European summit on Friday, meanwhile, the pressure on debt securities is growing, also due to the continuous increase in supply by the various countries. Btp yields rose to 1,98% and lo spread, the differential with respect to the rates of equivalent German bunds widens to 250 basis points. Italy today commissioned a pool of banks to carry out a double tranche syndicated issue in which it is placing the new BTP maturing in July 2025 and reopening the offer of the 2,45% 2050 BTP. Reuters this morning he reports that the European Council will not take a definitive decision on Eurobonds or emergency funds, even if many countries have asked to clearly fix the times and terms of the initiative.
The widening of the spread is reflected in the performance of bank stocks. The Bigs come down Unicredit -1,5% and Understanding -2,5%. Also declining Ubi -0,3%, despite the strong rumors about the alliance of the bank led by Victor Massiah with Crédit Agricole, the first step towards the merger to counteract the takeover bid launched by Intesa. You save Ps +0,73%: the Treasury which could delay the exit from the bank's capital beyond the 2021 deadline set with Brussels, as a result of the coronavirus crisis.
Paris air for industrialists. Slows Pirelli -2,24% in both Michelin's accounts signaling a sharp decline in the global tire market, both the original equipment and replacement channels were down sharply in March. Pirelli should have recorded a drop in volumes in the first quarter of around 15%, the company had anticipated a drop of 18% for March.
Fiat Chrysler -2%. PSA Peugeot released part of the data for the quarter yesterday evening, revenues fell by 16%, better than consensus expectations.
confirmed the heads of the state subsidiaries. The CEOs of Eni, Enel, Leonardo and Poste Italiane have been reconfirmed. As regards the presidencies, the law professor Lucia Calvosa has been indicated for Eni, the lawyer Michele Alberto Fabiano Crisostomo for Enel, the former director of Aise Luciano Carta for Leonardo, while for Poste there is confirmation of Maria Bianca Farina.
