The specter of the lockdown depresses the European stock exchanges which close in the red, while the euro retreats and oil plummets. The Covid situation also partially alarms Wall Street, but the Nasdaq updates its all-time high with stay-at-home stocks.
What triggered the wave of sell-offs in Europe, especially on banks, was the Austrian decision to reintroduce generalized restrictions (therefore also for vaccinated people) starting next Monday, for 10-20 days. Mandatory vaccination has been envisaged in the country since February, given that persuasion was not enough to involve everyone in this war against Covid. In the light of these decisions, the main Vienna stock exchange loses 2,92%.
The epidemic situation is increasingly alarming in Germany, while some countries are already introducing restrictions for incoming travellers.
Italy apparently has fewer infections, yet Business Square it is among the worst and closes the week in reverse, with today's drop of 1,17% (27.237 points) mainly due to banks, which have a high specific weight on the list. The big ones collapse, Unicredit E-4,14 Understanding -3,36%, but they are not doing well either Bper -2,73% and Bpm bank -2,58%. mps it lost 4,39% after being suspended in the session due to an excessive downtrend.
Among the worst blue chips of the day there is Leonardo -3,49%, penalized, according to Radiocor, by the uncertainties related to the sale of Oto Melara to the Franco-German group Knds given the willingness of the Italian government to support an intervention Fincantieri (-2,94%). Among the industrialists stellantis -2,5%.
Oil stocks are negative: Tenaris -2,57%; Saipem -3,07%; Eni -2,11%. The six-legged dog can't resist the shock wave despite Barclays' promotion to "overweight". Mobility restrictions are a concern Atlantia -2,23% and Rest, -6,34%.
Among the stocks with greater capitalization there are instead those who have moved decisively against the tide. It is the case of Telecom, which closes with an increase of 3,65%. According to Reuters "speculative purchases related to rumors of a takeover bid by KKR on the company relaunched a few days ago by a newspaper cannot be excluded". Some pharmaceutical stocks see new business opportunities in the pandemic resurgence such as Recordati +2,69% and Diasorin +2,39%. They appreciate each other considerably Ferrari +2,22% and Inwit + 1,76%.
Closes the secondary in green: lo spread between Italian and German ten-year bonds, it fell to 118 basis points (-1,23%) and the rates on the two securities fell to +0,81% and -0,37% respectively.
Today the number one of the ECB Christine Lagarde returned to the hot topics such as rates, inflation, recovery, reiterating the ultra-expansive policy of Eurotower. It is very unlikely – you said – that the conditions for a rate hike will be met in 2022; inflation is temporary and monetary policy must be patient and persistent; a premature squeeze would be detrimental to the recovery. Also given the pandemic situation, the ECB's attitude remains very accommodating.
In this context, however, theeuro continues to lose ground. The exchange rate against the dollar is currently hovering around 1,132, after falling below 1,131.
In the rest of Europe too Madrid -1,66% suffers from the ko of the banks, while the losses are more contained a Frankfurt -0,36%; Paris -0,42%; Amsterdam -0,4%; London -0,41%.
The lists have recovered some small positions following the performance of Wall Street which, after a weak start, now moves in opposition.
The decline is confirmed Dow Jones, but the higher S & P500 he reset his losses returning to the highs and the Nasdaq is on the rise after yesterday's record close.
Meanwhile, the United States House of Representatives has approved President Joe Biden's plan by $1.750 trillion, projecting the largest welfare aid expansion in decades. However, the plan must now also be approved by the Senate.
On the raw materials front, crude oil is sinking, frightened by the return of the pandemic to the fore in Europe. Investors also continue to assess the impact of major economies potentially freeing up reserves in a coordinated effort to lower energy prices and tame rising inflation. The Brent it fell by about 2,7% just above 79 dollars a barrel; same trend for the wtf, at about $76,20.
