The collapse of Credit Suisse (-24,02%) unleashed a new storm on the markets today, knocking out the European stock exchanges and negatively influencing the start of Wall Street, despite the unexpected drop in US producer prices in February (-0,1%).
The end is thus in deep red in Europe, starting from Milan, which closes with a drop of 4,61% and goes back a few months to 25.565 basis points. It's not much better at Madrid -4,31% London -3,81% Paris -3,58% Frankfurt -3,25% Amsterdam -2,85%.
The European banking index falls by about 8%.
The general panic is affecting heavily the Petroleum and oneuro.
Splash of euros and oil
The escape from the share makes the purchases converge on the dollar, which swells above all against the euro, down by about 1,8%, for an exchange rate just above 1,05.
Fears of a global recession, rekindled by the US banking crisis and the new alarming signal in Europe, weigh on oil today as well. Brent and WTI futures lose about 5% and are trading at around $73,73 a barrel and $67,76 a barrel, respectively. Texan crude is at its lowest since December 2021.
Instead, it is appreciated , with spot gold up 1,6% to $1934,51 an ounce.
Bond yields go down, but the spread goes up
Government bonds close a tonic session. In Europe, it was above all the Bunds that intercepted the favours. Yields are also falling for Italian paper, but lo spread it's getting larger. At the end, 192 basis points (+7,43%), for a ten-year Btp rate of 4% and the same-term Bund rate of 2,09%.
Troubled waters among the banks waiting for the ECB
The financial week therefore continues on a roller coaster and the price lists, after yesterday's surge, today plunged once again into the abyss in Europe on the eve of the meeting of ECB which will probably raise rates by 50 basis points tomorrow, remaining rather insensitive to the rampant uncertainty. On the other hand, according to a trader quoted by Reuters, a 25 basis hike would be interpreted as an admission that there is a problem after the storm unleashed by fears of contagion over the collapse of US Silicon Valley Bank and Signature Bank.
In the US, banks are currently down and First Republic Bank loses 18%, worst stock on the S&P 500, after its rating was cut by S&P to 'junk'. "We believe the risk of a deposit flight from First Republic Bank is high," the agency's analysts said.
In Europe the drama has as its protagonist Credit Suisse, now in its eighth consecutive session of declines, for a value that has updated its historical lows. What triggered the panic was the news that Saudi National Bank, the main shareholder of the Swiss bank, said that he will not provide the investors with further financial aid, as he cannot go beyond the 10% stake. In the afternoon, the reassurances of the CEO of the Swiss institute were of little avail, Ulrich Koerner: “Our capital, our liquidity base is very, very strong – he said – we meet and exceed practically all regulatory requirements”. However, credit default swaps (that is, the price of bankruptcy insurance) do not bode well. According to Bloomberg, the one-year ones, yesterday at the close, were indicated at 835,9 points and today they are further increasing, close to the 1.000 mark which indicates a high level of concern. The current level corresponds to 18 times the one-year CDS of UBS and about 9 times the equivalent of Deutsche Bank.
According to reports from the FT, Credit Suisse today asked the Swiss National Bank and the stock market supervisory authority (FINMA) to show support for the group and reassure the markets.
Piazza Affari weighed down by banks and oil companies
Oil stocks and banking stocks are still the worst performers today Business Square.
It starts from Saipem, -9,88% and continue with Unicredit -9,06% Tenaris -8,95% Finecobank -7,63% Bper -7,23% Bpm bank -7,13% Understanding -6,85%.
The day was also unfavorable to Leonardo -6,82% Cnh -6,61% Unipol -5,89%.
On this Black Wednesday, however, there are even three timidly positive blue chips: Campari, +0,52%; Getting very, +0,23%, which this morning disclosed positive 2022 results, with better-than-expected profit, debt and dividend indications; Terna + 0,38%.
Out of the main list it collapses Monte Paschi bank of Siena (-10,09%).
Instead, it highlights Marr, +6,88%, after the accounts presented yesterday. According to Banca Akros "the results were slightly below expectations, but the estimates are for a strong recovery of profitability in 2023". The broker confirmed the target price at 14,40 euros and changed the judgment to "buy", from "accumulate".
