The bleeding on the markets does not stop, after the losses of the last quarter, fueled by fears about the health of the US economy, by the collapse of mega tech companies, after some disappointing quarterly reports, by the Middle Eastern crisis.
I European lists they close today in deep red, despite recovering from the lows reached when Wall Street presented itself with a thrilling opening. In the USA, it seems, in these hours we are talking about nothing other than the fall in the price lists, in New York and that of Simone Biles on the beam, at the Paris Olympics, where the Italian Alice D'Amato won the 'gold.
The starter of the markets arrived from Asia, with a collapse of the Nikkei of 13,47%.
Another black day in Europe; Milan down, but Datalogic flies
Europe thus archives another session to forget.
Square Business it loses 2,26% and returns to 31.293 basis points. In Milan to find a good performance you have to leave the main basket. In particular, Datalogic marks a progress of 11,07%, after the half-yearly results which are convincing the experts and the market. For Equita "the second quarter was better than expected across the board" the outlook is confirmed with an improving second half.
in the rest of the continent Frankfurt lose 1,73%, London -2,04% Paris -1,61% Amsterdam -2,34% Madrid -2,34%.
Wall Street: Nasdaq plunges, indicating skyrocketing fear
Overseas, after a start at -6%, the Nasdaq now gives up 3,64% (DJ -2,64%; S & P 500 -3,06%). The fear index is at its highest since the 2022 lockdown.
After the long season of earnings, at the start of August we are thus witnessing a flight from stocks, also of a psychological nature, with investors choosing refuges such as Bunds, Treasuries and yen, while shunning gold.
In American stocks Nvidia loses 6,3%, while Apple leaves 3,37% on the field. Among the reasons for these collapses there is also the disappointment for some quarterly publications in the club of the "magnificent seven", which alone represent 25% of the US market and therefore often have a good and bad time on the price lists.
Extraordinary intervention by the Fed?
The market also contributed to fueling fears US jobs report in the month of July, seen on Friday, together with the ISM manufacturing report, in sharp decline. These data have fueled fears that the Fed's umpteenth postponement of an initial easing of the strong monetary tightening could come too late and that the American economy could slip into recession. So much so that bets on an emergency intervention by the American central bank also increased and in the morning traders had reached the point of pricing the probability of a rate cut of 60 basis points within a few days at 25%, positions which over the course of session, however, they were reduced to 30%.
On the other hand, the ISM on services released today and relating to the month of July offered a picture of activities still expanding, with an index only slightly lower than that of June, at 55, compared to 55,3 last month and expectations of 55,1 (above 50 the picture is expansive).
These days the economists of Goldman Sachs they increased the probability that there will be a recession in the United States next year to 25% from 15%, while underlining that there are “several reasons not to fear a crisis”.
In any case, the president of the Chicago Fed Austan Goolsbee in an interview with CNBC he said the central bank would intervene if the world's largest economy deteriorates.
Dollar down
The macroeconomic framework weighs on the foreign exchange market dollar, which loses against the main currencies: theeuro is approaching a change of 1,1 (1,097). The greenback loses more than 2% against the yen (cross 143,11), following the opposite directions in which the two central banks are oriented: the BoJ, which has maintained an ultra-expansionary policy against the trend, raised rates slightly last week, while the Jerome Powell a first easing of the tightening is finally expected.
Among the raw materials, the Petroleum, which reached six-month lows during the day. At the moment the losses are more limited: Texan crude around 73 dollars a barrel and Brent at 76,50 dollars.
Piazza Affari, only shades of red on the FTSE Mib
In Square Business today there isn't even a blue chip rising. The shades of red are more intense for the queen of digital payments, nexi -6,05% and for energy stocks such as Erg -4,77% Saipem -4,41% Ivy -4,01%.
The fear that the government may introduce some form of levy on lenders, insurance companies and other sectors, such as energy and luxury, further aggravates the discontent in these sectors.
Among insurance securities, it declines Unipol -3,22%.
It's still a letter about the banks: Ps -3,15%, tomorrow will present the results and the update of the industrial plan.
Telecom it lost 3,09% (0,2104 per share), but in the session it reached new lows since mid-December 2022, also breaking the psychological support of 20 cents.
Spread rises slightly
In this context of risk aversion, the Italian paper remains on course. The spread compared to the German ten-year it rises to 152 basis points, with the Bund which presents itself as a safe haven. At the end of the session, the yields of the two ten-year bonds were indicated at 3,67% and 2,16% respectively.
On the macroeconomic front, the Hcob PMI services index in Italy was released today, which fell to 51,7 in July from 53,7 in June. Expectations were at 53. So far 2024 has continued to see monthly growth, but the latest increase was the slowest and most modest in 6 months.
