The European stock markets are down under the pressure of the dollar and oil but also of the surge in the German Bund, a safe haven asset par excellence, also driven by the purchases of the ECB: only in May will Frankfurt be able to divert part of the purchases on corporate bonds. Meanwhile, the German economy is slowing down: factory orders fell by 1,2% in February.
In Piazza Affari, the Ftse Mib index lost 3%, Paris 2,08% and Frankfurt 2,35%. The global Stoxx 600 index, down 2%, reached a 12-month low. The 10-year BTP rose to 1,272%, the spread on the Bund, still falling (to 0,09%) increased to 122 points at its highest since 9 March.
“I don't see much room for compression for BTP rates,” public debt manager Maria Cannata commented yesterday. On the second day of the BTP Italia, orders for over 1,4 billion arrived. "I don't think we will deviate much from last year's retail results (5,4 billion)."
Wall Street continues to decline with the S&P500 losing 0,9%, the Nasdaq 0,7% and the Dow Jones 0,6%. Big pharma Allergan drops more than 16% after the Treasury Department announces new measures to prevent tax inversions, potentially jeopardizing the $160 billion merger with Pfizer +0,5% .
Today, market sentiment is weighed down by oil at a one-month low after the unexpected drop in demand for gasoline in the United States and concerns that an agreement can be reached between the major crude oil producers to deal with the excess production.
Brent oil falls by 0,4% to 37,55 dollars a barrel, Wti -0,4% to 35,65 dollars. The euro/dollar exchange rate is stable at 1,137, recovering slightly from today's low of 1,14. The yen at 110,56 is at its highest since October 2014.
A new landslide in the banking sector in Piazza Affari: the Stoxx index is down by 3,1%. Banco Popolare loses 8,05% below the 5 euro quota, to its lowest ever. Heavy fall of Banca Popolare di Milano -6,56%. The two banks have announced an integration plan which provides for a capital increase of 1 billion euro.
In the morning a meeting was held at Palazzo Chigi: in addition to Matteo Renzi, the leaders of the CDP were present, together with the farewells Intesa, Unicredit and Ubi. At the center of the meeting the forthcoming, problematic capital increases of Pop Vicenza and Veneto Banca, as well as the Monte Paschi node. Apollo's plan for Carige is also under discussion.
The mobilization did not calm the markets: Unicredit lost 3,05%, Intesa Sanpaolo -4,33%, Monte Paschi -4%, Ubi Banca -5%. Savings companies are also down, Banca Mediolanum -4,3% (despite the growth in funding), Anima -4%, Banca Generali -6%.
Bad day also for the automotive sector (-3,3% for the sector index). Peugeot -6% drags down the European industry. The French manufacturer announced this morning that in the three-year period 2016-2018 revenues will grow by 3,2%, but the operating margin target falls below expectations. Fiat Chrysler loses 5%.
Eurofighter mega contract with Kuwait does not save Finmeccanica -2,29%. StM also down -5,79% and Prysmian -3,21%. The decline does not spare the other blue chips. Eni loses 2,5%, Saipem 5,78%, Tenaris 3,82%. Enel leaves 3,33% on the ground, Telecom Italia 2,44%. The two companies find themselves increasingly rivals in the broadband race. Mediaset is down by 5,68%.
