Flurry of sales on the European markets that follow the negativity of the Asian lists. Clouds are gathering on the prospects for economic recovery with the Delta variant which could impact precisely in the second half of 2021 which everyone indicated as the period of greatest propulsion of the economic recovery. Also worrying are fears that the Federal Reserve will implement the tapering (reduction of asset purchases) earlier than budgeted.
Also worrying is China’s hard hand on domestic companies listed on US stock exchanges and which are largely technology companies. The country promises to crack down on national companies going public on Wall Street. A move that could upset a $ 2 trillion market and much loved by some of America’s biggest investors.
On the central bank front, waiting for today’s announcements of the ECB with the strategy review which should contain a greater tolerance for inflation above the 2% target. “The change should allow the ECB to to maintain an accommodating policy for even longer, considering that, according to the Institute’s latest estimates, inflation in 2023 should be 1.4%, far from the target ”, remark the analysts of MPS Capital Services.
Treasury rates lower and lower, banks pay duty
Indications that weigh above all on the banking sector, among the most penalized in recent sessions thanks to the retracement of yields (US Treasury 10Y rates at over 4-month lows below 1.3%).
Piazza Affari shows a drop of more than 2% (-2.03% to 24,775 points in the Ftse Mib), making it the worst in Europe together with the Spanish Ibex 35, which is also very exposed to the banking sector. More contained drops for the Dax in Frankfurt (-1.18%).
All the titles of the Ftse Mib travel in decline. As mentioned, the weakness of the banks stands out: over -3% for Banco BPM and Bper. Unicredit is also very bad (-3.1% to € 9.44) which travels on a two-month minimum with a balance of over -12% in the last month. Contains the decrease to -2.67% by Intesa Sanpaolo.
Stellantis and TIM are also bad
Among the big companies, ENI also suffered at -2.2% and Enel at 1-.8%.
Day of strong sales also on the Agnelli galaxy. CNH drops more than 3% as does Stellantis, which this morning anticipated that margins on adjusted operating profits in the first half of 2021 should exceed the target for the whole 2021 of between 5.5% and 7.5%. Despite the volume losses compared to planned production levels, the group benefited from the positive trend in prices and the favorable product mix. Waiting now for the details of the electrification strategy which will be explained by the ce Tavares at 2.30pm.
Finally, Telecom Italia also hurt (-1.69% to 0.395 euros) after the l‘Antitrust has initiated an investigation into some clauses of the agreement between Tim and Dazn for the distribution and technological support relating to the contents of Packages 1 and 3 of the rights for watching the matches of the Serie A football championship in the three-year period 2021-2024.
If you want updates on Deep red in Piazza Affari: flurry of negative catalysts triggers sell-offs on all stocks of the Ftse Mib enter your email in the box below:
We have received your registration request. If this is the first time you register for our services, confirm your subscription by clicking on the link received by e-mail.
If you want to receive personalized information, also fill in the following optional fields.