Listen to the audio version of the article
(Il Sole 24 Ore Radiocor) – The fears related to the spread of the new Omicron variant of the coronavirus and the consequent downturns accused by the markets send the monthly balance of European stock markets into “red”. In fact, if until last week the indices remained substantially in line with the levels of the end of October (thanks to the rally that had brought them to new highs on November 15 and then to the subsequent correction), in the last few days the stock exchanges have returned to the values of the half of last month: in Piazza Affari the Ftse Mib it thus lost a total of 3.95% compared to the end of October 29th. Among the main continental indices, the best performance was that of Paris (-1.6%), while London recorded -2.46%, Frankfurt -3.75% and Madrid -8.31%. Overall, the European Stoxx 600 left 2.64% on the ground.
In the last session Powell “falco” confuses the price lists
The divergent opinions of the scientific community on the resistance of anti-Covid vaccines in the face of the new one variante Omicron stock markets disoriented in the session of November 30, which are struggling to assess potential future economic impacts in a climate of general volatility. In fact, if the CEO from Moderna, Stephane Bancel, spoke of less effective vaccines against Omicron, the biochemist of Biontech, Katalin Kariko, pioneer of mRna technology, believes it is unlikely that the new virus “holes” the current protection. On the macro front, a new element of uncertainty was added: the president of the Federal Reserve, Jerome Powell, in fact, believes that it is “the right time” to stop talking about “transitory” inflation and announced that the possibility of accelerating “tapering”, that is the reduction of the asset purchase program, will be discussed at the next meeting of the central institution . The European indices thus experienced a fluctuating afternoon before closing in negative territory.
At the top DiaSorin, down Tenaris and the Agnelli galaxy
In this climate of uncertainty, sales on the FTSE MIB were generalized for most of the session. Pharmaceuticals were saved with Diasorin among the best and Recordati well above par. Among the banks, Unicredit was highlighted, which began the countdown in view of the presentation of the new Business Plan, scheduled for December 9th. Telecom down again, while the game ofoffer Kkr is still open and the rumors of the French media speculating on the role of Xavier Niel, founder and first shareholder of Iliad. At the end of the list, penalized by the poor performance of industry and cars at the European level, they end up at the end of the day, among others, Cnh Industrial and Banca Mediolanum. Weak Exor on its Investor day and Stellantis. Oil was also down, in particular Eni and Tenaris, with the new drop in crude oil. It is no better for Saipem which has signed a new contract with Saudi Aramco, with a total value of approximately 750 million dollars, relating to the Jafurah Development Program project in Saudi Arabia.
Euro returns below 1.13 dollars, eyes on the Fed
On the foreign exchange market, the dollar returns to strengthen after Powell’s words and returns below the 1.13 share for a euro that it had lost at the start: one euro is in fact worth 1.1274 dollars, in line with 1.1270. of yesterday’s closing. The European single currency is also indicated at 127.87 yen (128.14 yesterday), while the dollar / yen ratio is at 113.42 (113.72).
BTP / Bund spread trend
Spread closes up at 131 points, rate at 0.97%
Closing slightly higher due to the spread between BTp and Bund. At the end of the trading, the yield differential between the ten-year benchmark BTp and the German bond of the same duration is indicated at 131 basis points from 129 points at the closing on 29 November. The yield of the benchmark ten-year BTp fell fractionally, which marked a last position at 0.97%, from 0.98% of the reference on the eve of the day.