THE GREEK REFERENDUM SINKS MILAN STOCKS -6,57
10 BTPs RETURN 6,33%
WALL STREET STARTS BAD TOO
European stock exchanges continue to plunge after a strongly negative start on Wall Street: the Dow Jones starts down by 2,05%, the S&P500 by 2,76% and the Nasdaq by 3,04%. The surprise announcement by the Greek prime minister to submit the agreement for the European rescue of the country to a referendum opens up a real risk of default for Greece and sends the markets back into panic. Milan leads the collapse to -6,57% while the spread between ten-year BTPs and the Bund jumps to 455 basis points and the yield of BTPs to 6,33%, ever closer to 7%, a threshold considered to be of no return.
But on fears of contagion, the collapse affects all of Europe, albeit with more contained declines: the Dax loses 4,77%, the Cac 4,92% and the Ftse 100 2,83%. The race towards less risky investments and therefore to the German bund considered a safe haven also widens the differential with the ten-year bonds of France and Spain which rise to 121 basis points and 384 points respectively. It is always the banks that fall. The French suffer with Dexia losing 16,8% and Société générale 16,3% but also the Italians: Intesa Sanpaolo ends up in the volatility auction with a theoretical drop of 14%, Unicredit loses 11,3% and the Fondiaria Sai insurance group 9,37%.
But among the worst there are also the securities of the galaxy: Fiat spa loses 8,56% and, repeatedly suspended, Fiat Industrial 9,60%. On the Ftse Mib, no security is able to react to the declines and move into positive territory, while on the Star we note the rise of Sabaf (+3%) and the slight progress of Banca Ifis (+0,24%) The euro loses about 1,1% against the dollar to 1,369, from 1,385 at last night's close.
DOUBLE-DIGIT LOSS FOR INTESA AND UNICREDIT
IN SERIOUS DIFFICULTY THE BPM INCREASE -7,05%
The heaviest impact was recorded on bank stocks: Intesa lost 11% and UniCredit 10%. Both stocks were postponed due to excessive downgrades. Among the other Italian banks, Banco Popolare scores -7%, Ubi -4,4%, MontePaschi -7,3%. The capital increase of Bpm -7,05% continues with reductions. Meanwhile, a note from Investindustrial specifies that “following transactions that took place on the market” Andrea Bonomi's stake in Popolare di Milano rose to 3,43% post-increase counting the shares and option rights available.
Investindustrial announced that it "intends to voluntarily and regularly disclose to the market the shares and option rights of Popolare di Milano held by it or by companies directly or indirectly controlled by it". Same bitter script in the rest of Europe. All European banks are under pressure. Bnp Paribas falls 9,5%, Barclays falls 9,2%, Credit Suisse falls 8,4% after announcing lower-than-expected results for the quarter and new layoffs for 1.500 employees.
Among the insurance stocks, the crash of Axa stands out -11% followed by Allianz - 6,9%. Generals limit damage -2,8%. As for Fiat, which loses like all stocks linked to the economic cycle, in an interview with Automotive News the CEO Sergio Marchionne anticipated, among other things, that the sales target for 2012 could be lowered from 2,7 million to 2,5-2,6 million. Oil is down 1,8% to 91,4 dollars a barrel. Eni drops by 3,2%, Saipem scores -3,7%
