Banks collapse and overwhelm Business Square which closes in the red by 2,85%. Sharp declines also for the other European lists: Paris -1,33%, Frankfurt -1,53%, London -1,43%. Sales hit the banking sector throughout Europe but are particularly violent on Italian institutions that suffer a flurry of suspensions. Among the worst of the Ftse Mib Banco Popolare -10,02%, which is weighed down by the hypotheses of a stalemate of the merger with Bpm, Ubi Banca -8,99% and Bper -8,28%. Mps -6,67%, now at historic lows. Among the best-selling titles also Yoox -8,29%. Bad too industrial. FCA -4% after the voluntary recall of 441 Dodges. Still sales on oil with Eni losing and the collapse of the oil does not stop Saipem rights -49,45%, worst title ever on the Ftse Mib. The combined price/right closed at 1,6 euros, down 40% compared to yesterday. Since the announcement of the terms of the capital increase, the liability is 69%.
Only three blue chips are saved on the main list: Salvatore Ferragamo +1,38%, Tod's +0,76% and Tenaris +0,34%. Bounce instead the Petroleum: WTI climbs 3,92% to $31,05 a barrel and Brent 3,76% to $33,95 a barrel, despite oil inventories reading rising above 500 million barrels, an increase of 7,7 million.
After a positive start following the rise of crude oil, too Wall Street it has reversed course and at the closure of Europe it travels in negative territory. The Dow Jones fell 0,17% and the S&P500 1,13%. In addition to the banks, technological ones are also declining, with Amazon losing 4%. The trend reversal was triggered by the data published in the afternoon on the ISM index which in January dropped to its lowest level in the last 20 months, worse than expected, to 53,2 points from 55,8 points.
The market wonders about what the Fed will do now, in relation to the rate hike policy launched in December. The euro leaps up against the dollar by 1,20% to 1,1050 also due to the words of the president of the Federal Reserve of New York, William Dudley, who declared in an interview that the worsening of the outlook of the global economy and the strengthening of the dollar risk damaging the American economy. Dudley said the Fed will be keeping a close eye on a continued tightening in credit conditions as it moves forward with its interest rate hike program.
Still on the macroeconomic front, the Adp sui figure was published jobs created in January in the US in the private sector, 205 new jobs, slightly better than expected. on Friday, the Labor Department will announce the official data on the new jobs created in the month inclusive of the public sector.
