The Draghi effect lasted only a day. The financial week ended with further, sharp declines across all stock markets.
At Piazza Affari, the FTSE MIB index closed in deep red with a loss of 3,18%. Before the US data, the market was down 2,5%. It subsequently improved to -2,0%, before resuming its downward trend.
Paris also saw heavy losses (2,8%) and Frankfurt (2,7%). London lost 2,44%. Madrid fared better (1,96%).
The BTP/Bund spread remained stable, closing at 121 points (versus 119 a week ago). The yield on the 10-year bond closed at 1,87%.
The American stock market saw a sharp decline: the Dow Jones and S&P 500 indices lost 1,5% and 1,3% respectively, while the Nasdaq fell 0,9%.
The dollar traded below 1,11 against the euro today. The exchange rate is now at 1,111, down from 1,112 yesterday.
The negative trend, already dominant in the morning, was accentuated by data on the US labor market, which provided conflicting indications, but which, according to operators, were compatible with a possible tightening of US interest rates.
In August, "only" 173 new jobs were created, compared to the 217 expected. Meanwhile, however, the July figure has been revised up to 245 new jobs, down from 215 in the initial survey.
Consequently, the two-month outlook is substantially in line with forecasts. Other factors confirming the improvement in the US economy include the average wage increase (+0,35) in August and the simultaneous decline in the unemployment rate to 5,1% from 5,3% in July, versus the 5,2% economists had forecast on average. The 5,1% rate is the lowest since April 2008.
At Piazza Affari, banks are suffering the heaviest losses: Unicredit The stock fell 4,9% after being halted for excessive declines. The bank declined to comment on Bloomberg's reports of 10 layoffs. JP Morgan, meanwhile, lowered its rating to neutral from overweight.
Also down sharply Understanding-3,8% on which JP Morgan itself confirmed its neutral indication but raised the target to 3,5 from 3,2 euros.
MontePaschi -4,8%: JP Morgan has reduced its price target to 1,8 from 2 euros.
Among the insurance companies Generali -2,2%: Barclays raised its target price from 16,8 to 17,1 euros.
Difficult day for oil companies too: Eni -2,36%, despite Mediobanca's rating being raised to outperform from neutral.
Among the industrialists Fiat Chrysler -3%, Finmeccanica fell by 3,68% despite Equita confirming its buy position.
Finally the luxury, hit by Goldman Sachs's assessments: Tod's -4,07% (target price cut to 72,1 euros from 78,1). Ferragamo -3,72%, Moncler -4,27%. Luxottica -2,21%.
Even Campari, a traditionally anti-cyclical stock, fell 2,92%. Bryan Garnier raised his target to €7,1 from €6,82.
