Il Brexit torpedo is causing damage on European lists comparable to the great epochal collapses: Business Square at 12 back of the About 10,25%, Ftse Mib index just above 16 thousand points. A collapse that recalls that of 11 September 2001 (attack on the Twin Towers) and the bankruptcy of Lehman Brothers in October 2008. ?Only Madrid -10,7% is worse than Milan. Paris drops by 8,1%, Frankfurt -6,6%. London is more stable, which will benefit from the weakening of the Pound and leaves 4,90% in the field.
At the heart of the battle of Britain is above all the foreign exchange market. The pound loses 7% against the dollar and a generous 5% against the euro. “The first concern of the central banks – commented Donato Masciandaro – must be to avoid an uncontrolled rise of the dollar, which could cause the start of a recession. 40% of world trade takes place in the dollar, the currency in which 7% of non-US sovereign debt is denominated”. I am in the morning the ECB and the Bank of England have already taken action, awaiting the purchases of the Fed.
Gold climbs to 1.312 dollars an ounce (+4,5%).?
Il 10-year Bund yield it's back negative, but it's recovering: after hitting a new all-time low of -0,13% this morning, it's now back to -0,06%.?
Our BTP suffers with the yield rising to 1,50% from last night's 1,39%. An improvement is underway here too, if we consider that in the first trades the yield was 1,63%.? The spread is 159 basis points.
on European stock exchanges the most devastating effect concerns the banks: the European Stoxx index for the sector loses 13%, Banco de Santander plunges down by 19%, Bnp Paribas loses 15%, Deutsche Bank -13%.
Italian institutes are in great trouble which struggled to mark a price before posting double-digit losses. Seriously embarrassed Unicredit marks a drop of 18,6%, however recovering from an initial -25%, Understanding loses 19,3%, Mount Paschi -12,3% from the initial -44%.
Strong reductions also for the popular banks: Ubi -14,9%, Banco Popolare -15,2%.
Insurance companies also suffer (Stoxx of the sector -10%), Axa marks a drop of 13%, Generali -13,9%.
All stocks in the main basket are in red. The freshmen of luxury resist, starting with Luxottica -2,5%. Ferragamo -3% recovered from the lows (-10%): “The English market accounts for less than 2% of our total turnover – explained the outgoing managing director, Michele Norsa – it is a smaller market for us than that of Mexico and what's more? it's mainly driven by foreigners”.
Bad oil for fear of a sharp slowdown in the global economy: Brent loses 4% to 48,8 dollars a barrel. Eni loses 7%, Tenaris -6,7%.
Enel, which returned to trading after a period of suspension, lost 8%.
Among the utilities Terna -3,2%, Snam -4,5%. Fiat Chrysler drops by -6%: in the first trading it was -14%. question about what the Europe of the future will be”. Thus commented a spokesman for Fiat Chrysler Automobiles who added: "We do not expect that the fact of having the tax headquarters in Great Britain will lead to financial consequences or changes in the governance of the Group, given the global distribution of FCA's activities and operating offices in the various countries in the world".
