RED ALERT: STOCK MARKET -5%, SPREAD AT 402 BP
ITALY IN RECESSION SCARES THE MARKETS
Italian finance sinks under a hail of blows that does not seem to take prisoners: government bonds, bank or industrial shares, insurance companies and more. Piazza Affari records a drop of around 5%, much higher than the drop in other European markets where the changes are negative but not so dramatic: the Ftse Mib index marks a drop of 4,98% to 14.458. Paris -3,08% worsened in the final followed by London -2,24% and Frankfurt - 2,49%. Even the Bolsa of Madrid is doing better than Italy -2,95%, thus refuting the thesis according to which it would be the hotbed of the new wave of mistrust, the black jersey which, alas, belongs equally to Miliano.
It was a bad day, in fact, both for the Btp and for the Bonos of Madrid. The yield on the ten-year BTP rises by 18 basis points to 5,60% and the differential with the Bund, close to historic lows, jumps above 400 basis points to 421. The yield on the Spanish Bono rises by 19 basis points to 5,91% and the spread with Germany went to 431 basis points. In this context, the eve of the Treasury auctions takes on a tragic flavor: tomorrow it's the turn of the BOTs (11 billion against 8 maturing), Thursday of the 3, 5 and 15-year BTPs.
Meltdown. Caporetto. A reversal so dramatic that all possible explanations (and there are) still appear insufficient to explain the general disaffection that struck Business Square and Italy in general. The impact of the new public spending cuts (10 billion) unexpectedly announced by Madrid could help justify the better performance in Madrid Mariano Rajoy. But the run-up to new austerity measures does not seem to have any effect. Monetary managers are now looking with greater concern at the recessive effects of the anti-deficit measures which risk leading to new and ever closer and less sustainable maneuvers rather than at the effects on the deficit.
Not to mention the boulders that rain on the banking system again. After the alarm of New York Times the Spanish and Italian banks, again "swollen" by Bonos and BTPs with declining values, receive the message of the governor of the Central Bank of Spain, Miguel Angel Ordonez: it cannot be excluded that the banks will have to strengthen their assets again.
Il favorable data on stocks of wholesalers February (+0,9%) was ignored by Wall Street. But the European bear is not scratching US price lists for now: Dow Jones -0,4%, S&P500 -0,02%, Nasdaq -0,1%
A completely different music in Milan. At the bottom of the list, where there are very few securities to be saved, are the bankers. With one curious exception: Monte Paschi Bank +0,29%, with a surprise ending, is the only stock in the main basket to close in positive territory.
On the other hand, the abyss that opened up is frightening UniCredit -8,1% and Intesa Sanpaolo –7,94%. But also for Banco Popolare –7,30% e Ubi -6,49%. In free fall too Generali –4,8%. Orbi su barrel Fonsai -9,14%, limits Unipol damages -3%. But the list of discounts covers the entire price list. Stands out the fall of StM -8,1% or by Lottomatica -7,03%. Fiat it loses 6,41%, it does little better Finmeccanica -5,9%. Also Ansaldo Sts -2,3% closed in negative territory despite the approaching sale of a stake to Asian buyers.
Chapter of A2A after the downgrade of Standard & Poor's which lowered the rating of the company to 'BBB' on Friday. Only the performance of Rcs Media group +5,12% to 0,8 euro, in any case well below the price paid for the Toti family's share.
