EXCHANGES AND EURO DOWN, THE SPREAD AT 228 BP
GREEK TRAGEDY CORRODING EU FINANCE
Sales on the euro continue, on the fourth day of decline, the yields of government bonds of Italy and Spain shot up. And the Stock Exchanges adjust: a Business Square the FtseMib index fell by 2,6 to 13.660 points, Madrid -3,2%, Athens -4,5%. Paris -2,29%, Frankfurt -1,94% and London -1,97%. The reasons for the great fall are easy to understand: Greece seems one step away from new political elections, its exit from the eurozone is no longer taboo even for the ECB. In Germany the CDU, Chancellor Angela Merkel's party, suffered a bitter electoral defeat in North Rhine-Westphalia, the strongest area of German industry: something that does not please US investors. Meanwhile, the sword of Damocles hangs over Spain from the ax on the banks.
In this context, the happy outcome of the Btp auction worth like a water pistol in the face of a fire: the yield of the 10-year BTP rises by 24 basis points to 5,7%, that of the Spanish Bono by 27 basis points to 6,20%, in contrast to that of the German Bund drops by 7,5 basis points to 1,44%, a new all-time low.
Lo Italy and Germany spread it leapt to 428 basis points from 396 at Friday night's close. The euro also falls at 1,284. In eleven sessions, the single currency has lost more than 3% and is at the lows of mid-January against the greenback, at the lows since December 2008 against the pound (0,79895).
Also on Wall Street the threat of a Greek default favors the downside: the Dow Jones index falls by 0,8%, S&P500 -1%, Nasdaq -0,8%.
JP Morgan – 2% drags down the banking sector. Negatives Bank of America -1,8% Morgan Stanley -3,8% Citigroup -2,6% Wells Fargo -2,3%
Also in Piazza Affari, the most massive losses concern the banks: Unicredit, down 4,91%. Intesa -3,95% on the eve of the board of directors on accounts, Banco Popolare -2,5%, Mediobanca -2,16%.
In free fall Mediolanum -6,96% and Fondiaria Sai -7,2%.
But the Bear does not spare the industrial: Finmeccanica- 4,69%, StM -5,09%, Prysmian – 5%. And Fiat leaves another 4,06% on the ground.
The utilities are negative from Enel -2,8% to Snam -1,27% and Terna -1,37%. Telecom Italia is down by 4,68%. Among the few positive stocks, Diasorin rises by 2,7%, A2A +2,8%.
Good morning run up by 13% after the announcement of the offer on 100% of the share capital by the Japanese Ntt Docomo.
