Stock exchanges on a roller coaster and unbridled raw material costs: the balance sheet for the first session of the week is once again difficult, after the black Friday which closed the last eighth session, which cost the main EU markets around 400 billion in capitalisation.
The continental lists close with a loss, while limiting the damage compared to a thrilling morning. In the middle of the day there was even a transition into positive territory, with the announcement of a truce by Moscow (contested by Kiev) and the start of new talks between the parties. However, the attempted rebound of the markets soon failed after the jarring opening of Wall Street, while waiting for Biden to hear the German, French and English leaders by telephone on the possible ones fines for gas and oil. Italy appears increasingly peripheral in this match.
The sectors most affected by the sales are banks and autos, while oil stocks remain on the crest, riding the wave of black gold. Well the companies linked to a rearmament of the various countries.
In summary: Business Square -1,36%, 22.160 basis points; Frankfurt -2,01%; Paris -1,31%; Madrid -0,95%; Amsterdam -0,4%; London -0,44%.
Skyrocketing volatility for European stock exchanges
Volatility remains at an all-time high as investor sentiment is challenged by the swirl of news from the front lines of Russia's war on Ukraine. Among the topics of the day is the difference of opinion between the US and the EU regarding gas and oil imports from Moscow, which Biden would like to put a stop to, while this path seems impracticable for Europe, as the German Chancellor Olaf Scholz. “Europe – writes Scholz in a note – has deliberately exempted energy supplies from Russia from sanctions. There is currently no other way to secure the energy supply for heating, mobility, electricity and industry. It is therefore of fundamental importance for services of general interest and for the daily lives of our citizens".
In any case, gas and oil prices continue to experience unbridled growth. Gas updated its all-time high to a new record of 345 euros per MWh, to then slow down to around 280 euros in Amsterdam. During the night, Brent almost reached 140 dollars a barrel in Asia. North Sea oil is currently up 4% to $123 a barrel; Texan crude +2,17% to 118,2 dollars a barrel.
The gold march does not stop either, with the bar for immediate delivery trading in the area of 1984 dollars an ounce.
Super dollar and ruble in free fall
On the foreign exchange market, the dollar strengthens, while the euro trades at a two-year low of around 1,08. The ruble fell further after Moody's decided to further downgrade Russia's rating to “junk”, Ca, from B3, as the risk of a debt default increased significantly. The Russian currency, which traded at 75 to the dollar before the war in Ukraine, changed hands at 160 to the greenback. By contrast, Moscow has decided to pay creditors of foreign currency bonds in rubles: a move that raises the cost of protection from debt default. Countries such as Italy, part of one, fall into the category of those who will be reimbursed in rubles blacklist of hostile nations drawn up by Putin.
The Kremlin also clarifies its conditions for speaking end this war. Dmitry Peskov, spokesman for Moscow, in a telephone interview with Reuters, says that Russia is asking Ukraine to stop military actions, to incorporate neutrality into its constitution, to recognize Crimea as Russian territory and to recognize the breakaway republics of Donetsk and Lugansk as independent states. Russia - he specified - is not annexing Donetsk and Lugansk but is only asking that the two breakaway republics be recognized as independent states by Ukraine”.
Piazza Affari: rally of Tenaris, Eni and Leonardo
On the main list of Milan there are not only dead and wounded, but also titles in rallies such as Tenaris +13,03% which, like Eni (+4,29%), looks to the increases in energy prices, but also to the fact that redesigning gas and oil supplies in Europe will involve the construction of infrastructures and will feed the company's core business.
Among the best blue chips of the day there is also Leonardo, +6,3%, with a view to greater investments in defence.
The boosters are sturdy for Prysmian + 4,47% Cnh + 3,1%.
Instead, the damage count starts from Stellantis -6,4% and affects another jewel of the Agnelli galaxy like Ferrari -5,68%. The sell-off of bank stocks continues, starting with Unicredit, -5,59%, the most exposed to the Russian market. The climate is negative for the entire sector: Bpm bank -4,61%; Bper -5,17%.
Crazy day for Telecom, -5,45%, between dizzying peaks and impressive collapses, while the industrial roadshow is getting underway.
Slightly improving spread
The Italian secondary held up the shock wave, bearing in mind that the Bund is a safe haven asset par excellence in this phase of risk aversion. The spread between the ten-year Italian and German ten-year contract, it fell by 159 basis points (-1,9%), with a rate of the Bund of -0,01% and of the Btp of +1,58%.
