The political crisis that hit Donald Trump continues to infect financial markets in Europe as well. Operators, confused by the uncertainty spreading from Washington, move away from riskier assets, starting with the financial markets. Milan also suffers: the Ftse Mib index falls by 1,85%, again well below the 21.000 level under the pressure of bank stocks, the Achilles' heel of the Italian stock market. Also down sharply Paris (-1,2%), Madrid (-1,7%) And Frankfurt (-0,9%). It also slows down London (-1,3%), against the rise of the pound, recovering against the dollar.
New details emerge Russiagate: Reuters reports that in at least 18 phone calls and emails over the last seven months of the 2016 White House run, Michael Flynn had dealings with Russian government officials, including Russian Ambassador to the US Sergey Kislyak. The State Department has appointed, unbeknownst to President Trump himself, a special prosecutor to investigate alleged Russian interference in the presidential election. The super inspector is Robert Mueller, head of the FBI between 2001 and 2013. Mueller will have absolute powers and cannot be removed from office: at the end of his investigation he will report to Congress, which will decide whether there will be the president was accused, who for his part warned: "I will never back down".
Slightly catch up on the dollar to 1,112 against the euro, from 1,115 at yesterday evening's close.
The collapse of Fiat Chrysler (-6,21%), after the start of the procedure against Italy, accused of not having properly checked the regularity of some diesel engines of the group as regards emissions. Furthermore, FCA's attempt to reach an agreement with the American environmental agency, EPA, which is preparing to decide on a sanction against the car manufacturer, failed.
Sales also invest Telecom Italy (-4,12%). The new wave of crisis in Brazil, the group's second largest market, weighs on the stock. Evidence of bribes for the new president Michel Temer emerges from the interceptions in the hands of the judiciary. The first reflections on the ETFs dealing with the Bovespa are heavy.
The whole banking sector did badly, dropping 2,33% (-1,68% the European index): Unicredit -2,4% Understanding -1,9% Bpm bank -2%. The turmoil blew up the Vix index, which measures volatility in S&P500 stocks. Yesterday +46%, a daily change not seen since 2009. The demand for government bonds deemed "safe" strengthens: the yield on ten-year Bunds falls to 0,35% (from 0,37% yesterday evening). The BTP yields 2,15%, spread widening to 179 (+3 basis points).
They hold the bonds of Greece. 5,60-year interest rate at XNUMX%. Athens is making progress with reforms, but needs to clear many more hurdles before the European Central Bank considers its government bonds in its bond-buying (QE) programme, said Benoit Coeure, member of the ECB's executive board .
Il new BTP Italy May 2023 was placed by the Treasury to institutional investors for the sum of 5,4 billion euros, which adds up to the approximately 3,19 of the offer to the retail public, for a total amount of the issue of approximately 8,59 billion.
Oil down sharply. Brent is traded at 51,1 dollars a barrel (-2%). They go down Eni (-1,2%) and oil companies: Saipem -3% Tenaris -2,3%.
Industry stocks drop. Leonardo reduces the decrease to -1,4%: Fabrizio Giulianini, head of the Electronics, Defense and Security Systems sector, who according to rumors could have become general manager of the group, has resigned.
stm drops by 3,8%, Cnh Industrial -1,1% Prysmian -1,8%. On the rise Fincantieri (+ 3%), Aedes (+ 2%) and Pierrel (+ 1,5%).
Finally, the victory in the Italian Cup does not prevent the decline Juventus (-5,11%). It's less bad Lazio (-4,88%).
