Sales on the European Stock Exchanges in the aftermath of the disappointing data on Italian GDP which brought the country back into recession, the below-expected data on German production and today's words from the president of the ECB, Mario Draghi. The Ftse Mib left 1,94% on the field, sunk by the tumble of the banks while the Btp-bund spread returned to tension at 178 basis points. Overall, the fall of 01,93% in the All-Share index burned about 9,2 billion euro, it is assumed above all for the exit of international investment funds. Yesterday Milan had already lost 12 billion in capitalization.
Today the Treasury announced that on 12 August it will offer 7 billion 12-month BOTs at auction and that the quarterly BOT will not be offered. The amount is cut compared to that of maturing bonds: on the eve of mid-August, 8,625 billion annual bonds expire.
Paris loses 1,36%, London -0,58% where the Bank of England has today left rates unchanged at 0,5% and has maintained the amount of quantitative easing to support the economy equal to 375 billion pounds. Frankfurt -1%. In Germany, industrial production increased by 0,3% in June compared to the previous month of May against expectations of a 1,4% increase. On an annual basis there was a decrease of 0,5% with an increase of 1,4% on a monthly basis.
Investors are uncertain about the economic scenario, especially after the words of Mario Draghi who underlined that the latest data showed a slowdown in the pace of growth. The president of the Eurotower, who left rates unchanged in today's meeting on monetary policy, then unbalanced himself in a lash to Italy: According to the number one of the European Central Bank, the negative trend of our GDP was determined by the "weakness of private investment", which in turn reflects "the general uncertainty surrounding economic reforms": this is why "the time has come for the countries of the Eurozone to cede sovereignty to Europe as regards structural reforms ”. As if to say: since you are unable to do it yourself, let Brussels take care of it for you.
Overseas the music now seems different. US initial jobless claims fell 14 to 289 in the past week, beating analyst expectations for a reading of 300.000. The four-week moving average, on the other hand, fell by 4 units to 293.500 units. Numbers that support the hypothesis that the Fed can accelerate towards the reduction of aid to the markets.
On Wall Street, however, the Dow Jones dropped by 0,27%, the S&P500 by 0,14% and the Nasdaq is just slightly above parity +0,04%. Increased geopolitical tensions, including the situation in Ukraine, are weighing on global markets. WTI oil dropped 0,13% to $96,79 per share. Gold is nearly unchanged at $1.308,5 an ounce.
In Piazza Affari Moncler flies by 6,26% after the quarterly which showed sustained growth in revenues on a like-for-like basis. In the wake of the colored down jackets, online fashion by Yoox +2,89%, shoes by Tod's +2,04%. Fiat also stands out +1,39% after eight consecutive sessions of declines in which it lost a total of 17%. The CEO Marchionne yesterday tried to minimize the risk that too many requests for withdrawal could blow up the Fiat-Chrysler merger. Among the supporters of the operation, wanted by Exor with its 30% of the capital, there are numerous funds from Blackrock and Ishare ( the ETFs controlled by the American manager) but leading the no front is the Government of Norway, with its 27 million shares, including a small quota of the Central Bank of Oslo. A myriad of funds owning prefixed percentages of Fiat's capital are against the operation, including the compact positions of the managers Gmo and Ssga. Anyone who has not approved the merger, including absentees, has until August 20 to exercise their withdrawal and obtain 7,7 euros per share, against a stock market price of 6,5 euros.
Should the disbursement for Fiat exceed 500 million euros, the merger would fail and with it also the right to withdraw. In Milan, the sales hit the banks above all. The Bper sank by more than 13% despite the institute's top management announcing the return to profit in the first half of the year for 42,5 million euros. Among the worst performers Bpm -7,83%, Banco Popolare -4,35%. Mps left 3,6% on the floor while waiting for the accounts to be released on a closed stock market. Unipolsai was suspended on the downside and closed down 3,27% after the accounts. Other blue chips such as A2a (-5,5%), Atlantia (-4,2%), Enel (-2,9%) are also bad.
