Stock lists are rolling like cans filled with lead, struck by the bad news on the epidemic, the closure of borders and, above all, by US interest rates at zero as in the darkest moment of the 2008 crisis.
Business Square, which had closed last week with a drop of 22%, is down around 11:8,5, down by XNUMX%, in line with Paris (-8,7%) And Frankfurt (-7,5%). The black jersey is up to Madrid (-9,6%). It's no better at London (-6,3%). Futures signal an equally negative opening for Wall Street.
Meanwhile it is spread the yield between Italian and German ten-year government bonds rises to 252 basis points. BTP to 1,91% (+13 basis points). The yield on the 0,77-year Treasury Note falls to XNUMX%.
Il Petroleum Brent loses 8% to 31 dollars a barrel. The first estimates speak of a drop in world demand for crude oil of about 6 million barrels per day. Eni -5,76% to 6,5 euros. RBC cut the assessment to Underperform, target price at six euros. The same analyst sees buying opportunities on the London Stock Exchange, the English Shell has been promoted to Outperform.
Their it is up 0,5% to $1.524.
Euro at 1,112 on the dollar.
Il Fed Chairman Jerome Powell he explained that he had acted three days before the scheduled date, due to the drastic worsening of some stress indicators. The maneuver (700 billion), could be expanded, Powell said, but a change of statute is needed, a political go-ahead from the Treasury Department.
But the measures taken by the Fed and other central banks (Japan in the lead) as well as government interventions have not reassured the markets: flooding the market with liquidity is not enough to restore confidence. If anything, action is needed by all governments to tackle the epidemic, protect the people and businesses most affected while waiting for people to go back to consuming. Moves in this direction could arrive in the afternoon from G7 conference call.
In Europe, according to Industry Commissioner Thierry Breton, the decline in GDP in 2020 will be 2-2,5%. Meanwhile in China, in the first two months of 2020, industrial production collapsed by 13,5%, the first contraction in the last 30 years.
Half of the stocks in Piazza Affari are suspended due to excessive downtrend. The declines range from -5% to about 15%. There are no blue chips with a plus sign. Even Diasorin -4% loses momentum despite being in the forefront of virus diagnostics. at 6,74 euros, the day before it had touched the minimum since September 2018 at 6,13 euros.
Among the most targeted titles Fiat-Chrysler -15,83% after the stop of production in Italy and Europe.
You have Ferrari (-2,5%). Morgan Stanley lowers the target price to 180 dollars, well above the current price around 120 euros.
Under fire too stm (-14,27%) on the day of detachment of the quarterly coupon. Record losses also for nexi (-15,68%).
Driving the losses of the banking sector is Bper (-14,48%).
Among the utilities down Terna (-5,5%), on which Société Générale has raised its rating to Buy, target price at 6,50 euros. On Friday, the shares of the electricity disconnection company closed at 4,94 euros, in the last five days it has lost 17%.
Atlantia leaves 14% on the ground at 9,36 euros. It provided the first data on industrial traffic in the weeks of the beginning of the quarantine: around 40%.
