The market bulletin, as expected, records the heavy decline in the stock exchange lists of the Old Continent which lost, in one day, the gains recorded last week on the wave of the prediction of an agreement with Athens where the stock exchange remained closed. The ETF on Greek stocks, traded on Wall Street, records a decline of 17%.
In Milan, the FtseMib index fell by 5,1%, the Paris Stock Exchange lost 3,7%, Frankfurt -3,5%, Madrid -4,5%. Lower reduction in London -1,9%.
Heavy but not dramatic reductions for fixed income. After a very bad start, Eurozone stocks have recovered under the active supervision of the ECB. The yield of the 10-year BTP, on the eve of the month-end auction, rose to 2,38% from 2,14% on Friday evening. The German Bund fell to 0,79% from 0,92% on Friday. The spread widens by 37 basis points to 159.
Surprisingly, the stability of the euro recovered in the final going up to 1,118 against the dollar, from a low during the day of 1,108. The reasons? Perhaps the purchases of speculators who close the carry trade operations on the European stock exchanges. But there is no satisfactory explanation.
The sector most affected by sales was, as expected, the banking sector (European Stoxx index -4%) the most significant in the Italian list.
On the European Stock Exchanges, the greatest falls affected banks (Stoxx in the sector -4%) and Automotive stocks (-3,7%).
In Milan Unicredit they leave 7,1% on the ground, Understanding -6,1%. Double digit neckline for MontePaschi -10%.
It didn't go much better for the Spanish Santander -6,6% and bbva – 6%. In Paris Company Generate- 5,3%, BnpParibas -4,8%.
Down too Generali -5% and UnipolSai -4,4%.
No blue chip was spared: Eni -4,3% Enel -5,4% and Telecom Italy -4,7%.
Finmeccanica retreats by 4,4%, Fiat Chrysler -6,4% StM -3,6%.
Only a resumption of dialogue between Europe and Greece or the victory of the Yes vote in the Athens referendum, which European leaders are considering, could change the scenario and revive the markets. But for now we dance.
