The landslide of the markets does not stop and is gaining speed. In Europe, the Ftse Mib lost 2,83% in line with Frankfurt -2,83% and London -2,53% while Paris did worse, losing 3,19%. Athens yields another 2,49% weighed down not only by the international climate but also by the resignation of Prime Minister Alexis Tsipras who will go to early elections. Year-to-date, the main Athens index has lost 22%. The Btp/Bund spread rises again and reaches 128 basis points.
In the morning, the new shock for global stock markets came from the data on the Chinese manufacturing PMI which dropped to 47,1 points in July, the lowest level for 77 months. There was a new crash for the Asian price lists: Shanghai -4,3%, Shenzhen -5,4%. The Chinese authorities are unable to deal with the landslide in the markets despite the measures implemented since the beginning of the correction in July. Tokyo is also bad -2,98%.
Against this backdrop, Wall Street opened down, worsening in the afternoon: the Dow Jones dropped 1,38% and the S&P500 1,78%, dropping below the psychological barrier of 2000 points. The volatility index jumped above the highs seen at the end of 2015 and above the average of the last 10 years equal to 20 points with a rise of 20% to 22,97, beyond the 22,39 level reached on 15 January last.
The downward movement of Wall Street is also linked to the continued weakness of oil with the WTI which closed with a new significant drop of 2,4% to 40,33 dollars a barrel and to the non-sparkling macroeconomic data. In detail, the manufacturing PMI measured by Markit fell in August to 52,9 points from 53,8 in July, below analysts' expectations of 53,5 points. This is the lowest level since October 2013 even if above 50 points, therefore in economic growth territory.
Slightly below analysts' expectations, although the Eurozone composite index also improved, rising to 54,1 in August from 53,9 in July, the highest for two months. Analysts had expected 54,2 points. The PMI services index rose to 54,3 from 54 in July while that of manufacturing remained stable at 52,4. Today's data, according to Markit, "suggests that the eurozone is still witnessing one of its best periods of both economic and employment growth in the last four years". The German composite PMI also accelerated in August to 54 from 53,7 in July, the highest in four months.
The euro-dollar exchange rate rose by 1,02% to 1,1357 with the dollar at a seven-week low. While gold confirmed the tense situation on the markets by climbing by 0,65% to 1.160,70 dollars the ounce.
In Piazza Affari, back to the levels of the beginning of July, only Saipem is saved +0,54% supported by the rumors about yesterday's meeting between the managing director Claudio Descalzi and the CEO of Gazprom Alexey Miller where there would also be talk of new orders for Saipem.
Sales affect practically the entire basket of blue chips but above all affect the banking sector: Banco Popolare -4,65%, Mediobanca -4,65%, Bper -4,61%, Bpm -4,56%. Among the worst of the Ftse Mib also Cnh Industrial -4,46% which discounts the cut in the estimates of the American competitor Deere.
