A rapid escape from stocks and a rush to purchase German and American government bonds characterizes today's session, in the light of the choices of the central banks and in the fear that the recovery will be less solid than estimated up to now, also for the delta variable of the new coronavirus. After the losses recorded by the Asian markets in the morning, European lists thus close in deep red, while Wall Street starts in reverse, driven by the collapse of Chinese tech stocks which also seems to infect the rest of the market.
Among the most affected sectors are also mining, automotive and banking, but also travel and tourism, after Tokyo extended the state of pandemic emergency until August 22 in response to the increase in infections in the capital and announced that the Olympics will be held without spectators.
In Europe: Frankfurt it lost 1,77%; Paris -2,01%; Amsterdam -1,97%; Madrid -2,32%; London -1,64%. Business Square it is the worst: -2,54%, below 25 points (24.641) and without even a positive blue chip.
On the secondary it widens the spread between the 10-year BTP and the Bund of the same duration. The differential grows to 111 basis points (+3,68%). The rate of the Italian share records a very slight increase to +0,76%, but it is the German share that does better, -0,36%.
A fatal attraction also leads investors towards T-Bonds, which continue the rally started a few days ago. The yield on the 1,275-year Stars and Stripes fell back to +3,52% (-XNUMX%), reaching a four-month low.
On the other hand, after yesterday's records, US equities and the three main indexes fell Wall Street they each lose about one point.
On the foreign exchange market, the euro regained ground, gaining 1,184 against the dollar. Among the commodities, gold showed little movement, falling short of the threshold of 1800 dollars an ounce.
Instead, the other metals slide heavily. In particular copper, which in May reached a record of 10.747,50 dollars per ton. The three-month benchmark copper on the London Metal Exchange (LME) loses 1,7% and lands at $9.297,50 in official trading.
The choices of the Federal Reserve would weigh on prices, after reading the minutes of the last meeting which confirmed plans for a tightening of monetary policy sooner than expected, although not imminent. Furthermore, China has led to expectations of a possible easing of monetary policy to support its economy, a drift which according to Saxo Bank analyst Ole Hansen is interpreted by the market as a sign of weakness of the main global consumer of metals.
The recovery also shows some cracks in the data on weekly claims for unemployment benefits in the US, released today and disappointing: +2.000 to 373.000, against expectations for a drop to 350.000.
In Europe, meanwhile, the new monetary policy strategy of the ECB, which brings the inflation target to 2% "in the medium term", from the previous one "below or close to 2%". It is a “symmetrical” target, which “means that negative and positive deviations of inflation from the target are equally undesirable”. Small deviations are ok, according to the president Christine Lagarde, but in case of lasting and significant deviations the central bank is ready to intervene "vigorously".
The inflation target set at 2%, write the analysts of Mps Capital Services, "should allow the ECB to maintain an accommodating policy for even longer, considering that, according to the Institute's latest estimates, inflation in 2023 will it should settle at 1,4%, far from the target”.
It has been about 10 years since the target has not been reached, but on this occasion Lagarde underlines "the importance of the fact that the Governing Council has unanimously approved the commitment to reach the 2% target and implement the necessary measures to succeed. I am very satisfied with this unanimous support”.
The watchword on the markets, in the face of all these innovations, was "sell", in essence go to the collection after the many records strung by the shareholder.
In Piazza Affari the big caps most affected are Exor, -4,16%, on the day when stellantis (-3,35%), presented his electrical development plan. The car manufacturer, born in January from the merger between FCA and PSA, will invest over 30 billion euros by 2025 to electrify its line of vehicles and will also open a 'gigafactory' in Termoli, Italy. The company also anticipated that its first-half Adjusted Ebit margin will be higher than its full-year 2021 guidance.
Continue the bleeding up Telecom, -4%, Bad nexi -3,89%. The utilities go back starting from A2a -3,88%. Dive banks with Bpm bank, 3,59% to lead the downside.
Managed savings suffers with General Bank -3,56% and Post -3,48% and luxury with Moncler -3,49%.
