The stock exchanges sink, Milan is close to -6%. Financials on the cliff

Banking under fire: Société Générale in Paris once again in the storm – But sales have also been unleashed on cyclical stocks most penalized by fears of recession, such as Fiat and Finmeccanica – The spread between BTPs and Bunds is starting again, now hovering at 290 points .

In Piazza Affari there is a 5,83% drop to 15.021 points (but the drop reached 6,15% below 15 thousand points), while the other European markets also plummet: the Ftse Mib drops by 4,91% on Cac40 of 5,48% and Dax of 6,19%.
The risk of recession, fueled today by US economic data that is far from reassuring today and by Morgan Stanley's verdict on growth, has made the appetite for risk disappear: nobody wants to buy anymore. The result is a price crash that seems bottomless. Pressure in Europe mounted after Wall Street opened steeply lower with Dow Jones down 1,5%, S&P down 1% and Nasdaq down 3% before widening losses after minutes of trading . Now the Dow Jones is down nearly 3% and the Nasdaq is down 3,73%.
In Piazza Affari it is a new odyssey characterized by various suspensions for excessive reductions which concerned Buzzi, Fonsai, Lottomatica, Saipem and Mediolanum, Fiat and Fiat Industrial. Sales were unleashed on cyclical stocks most penalized by fears of recession but above all on car stocks from the Agnelli galaxy. In fact, the reductions were led by Fiat Industrial (-10%) and Fiat (-8,95%), also penalized by the new data released by the Brazilian sector federation which indicate a 3,09% drop in car sales in Brazil in the first half of August compared to the first two weeks of July. Exor (-7,66%) and Finmeccanica (-7,79%) are also bad.
Pure sales on financials, while the ban on short selling imposed by Consob last Friday is still in force. Intesa loses 7,74% and Unicredit 6,54%. The banks are penalized not only by the negative forecasts on the economy and by the European debt crisis, but also by the fears about new liquidity problems relaunched by the Wall Street Journal. In Paris, Société Générale falls again in the storm (-12%). The Fed, reports the newspaper, is stepping up its investigations into the US branches of European banks to test their ability to refinance themselves. The spread between the Btp and the bund restarts and now travels at 290 also due to the risk aversion that leads to purchases on bunds reducing yields.