The markets continue the day with a decidedly negative tone, under the pressure of the dollar rising against the euro to 1,074, the highest for over two years. Piazza Affari, among those affected, recorded losses of around -1,8%, slipping well below 24 points. London and Paris are doing worse, down by an abundant 2%.
As regards the bond market, tensions remain: ten-year Treasury Notes at 2,83%, ten-year BTP at 2,65%, German Bund at 0,91%.
China, Covid, war and Fed rates: the stock markets are falling
There are several causes for the fall in the stock exchanges of the Old Continent and of the futures that anticipate a red opening on Wall Street. The effect of the next US rate hike, scheduled for the May 4 meeting, is fueling risk aversion linked to the war in Ukraine, which is entering its third month, and the lockdown of more than 25 million people in Shanghai, which is to enter the second month. The Chinese situation is the most worrying: the authorities have extended to Beijing the drastic anti-Covid measures that are putting a strain on the production apparatus of the world's factory with heavy repercussions for global demand.
Indeed, the slowdown of Chinese manufacturing causes a deep decline in oil prices and other raw materials. Crude trades a good 4% down on the WTI version to well below $100 despite concerns over a possible total embargo on Russian oil by the EU. The result is that the shares, completely indifferent to the electoral success of Emmanuel Macron, point decidedly downwards. Raw materials are also collapsing. Futures on copper for delivery in May fall on the Chinese market by 8,4%, those on aluminum for delivery in June fall by 50%, those on iron by 48%.
But the Indonesian embargo sends palm oil flying
Fly instead the price of palm oil, following Indonesia's decision to ban all exports of cooking oil from April 28, in order to counter the shortage on the local market. The decision could cause problems for the food industry which uses it extensively: futures for delivery in July rose 6,3% to 6.754 ringgit per tonne on the Kuala Lumpur market.
Milan stock exchange better than the others
Also in Piazza Affari the drop in the prices of oil stocks takes center stage: at the bottom of the list is Tenaris -5,5%, followed by Saipem -4,3% and Eni -3,11%. The list of increases headed by Leonardo +1% is much more contained, which can count on the good quarterly results of MBDA, the European consortium building missiles and defense technologies in which it controls 25%.
Utilities contrasted after the report on the sector by Deutsche Bank which strengthens the BUY on Snam (-0,23%) by raising the target price from 5,60 to 6,0 euro; Terna cuts (-0.30%) from Buy to Hold, target from 7,70 to 8,30 euros and lowers Enel's target price (+030%) from 8,50 to 8 euros, but remains Buy. A2 at +0,18%.
In deep red Moncler -4% approx. Ferragamo does even worse -4,65%. Tod's -3,5%. and among industrialists Interpump-3,2%.
Positive Banco Bpm +0,39, heavy drop for Fineco -3,50%.
Outside the main list, Tiscali flies +6,14% on the day of the meeting.
