Milan – A turbulent day for stock markets, worried about the repercussions of the Chinese shutdown on global supply chains and after the start of the year which represents – for the S&P500 – the worst since 1939: a loss of 13% in the four months of 2022 versus -17% at the time. The cloud is not only on the prospects of investors war in ukraineWhich in addition to the human drama reopened the wounds of the energy market, but also New wave of covid in china And the succession of monetary tightening by central banks that must try to extinguish the fire of inflation.
An unexpected situation complicated the picture: there was also a “quick crash” on the indices in the middle of the morning, a sudden wave of sales that may have spread from the northern European markets, in particular the Swedish ones, which fell. to 8% in a few minutes. Oslo and Copenhagen were other stock exchanges that were severely affected, at first it was believed that the origin of the crash was based on Oslo specifically but Euronext Oslo made it clear that it was studying the causes of the movement, which is inexplicable at the moment. Major European arenas also took the hit, with Piazza Affari temporarily slipping to -3.5%. Then the movements partially subsided, but the underlying weakness remained. As the session draws to a close, Milan represents a decrease of 1.63%, Paris falls 1.66%, Frankfurt 1.11% while London It is still closed for holidays.
The “rapid collapse” of European stock exchanges, war and nerves on the edge of the skin behind the sudden fall of the lists
by Carlotta Scuzzari
Wall Street The first session of May opened weak and uncertain, after Black Friday (-4.1%) of the tech slate: at the end of trading on the Old Continent, the Dow was down 0.4%, the S&P 500 was 0.1% and the Nasdaq was flat. .
It’s up to this week feed it According to analysts, we are heading towards a rate hike of at least half a percentage point. But looking at the market expectations (futures – Deutsche Bank wrote – pointing to a 51.8 point rise) there is also someone betting on something else. dynamic bring The dollar is getting stronger: The common currency is losing ground against the dollar at 1.0526 (-0.15%), awaiting the Federal Reserve’s meeting on Wednesday that will decide to raise US interest rates. On the other hand, the euro rose against the yen to 137.00, while the dollar rose against the yen by 0.26% to 130.16.
while China released its manufacturing PMI on Saturday Which indicates that industrial activity contracted for the second month at the lowest level since February 2020 due to the closure of Covid cases. Today, however, it emerged that in April, the ESI (economic confidence index, which measures business and consumer confidence in the EU economy) fell in the European Union (to 104.9, or 1.7 points lower compared to the previous month) and in the Eurozone (at 105, Also in this case with 1.7 points less than the previous month). However, the index related to Italy registered a positive figure at 1.3 points compared to March. Among the main economies of the European Union, the ESI index decreased significantly in Spain (-4.5) and to a lesser extent in France (-1.4). Confidence remained broadly stable in Germany (-0.1), the Netherlands (-0.1) and Poland (+0.3).
keep expanding Spread between BTPs and German Bunds: The spread is still under pressure like other European government bond yields and is at 188.7 at the close after breaking 190. The rate of return rose to 2.845% but reached 2.9%.
The Japanese manufacturing sector It registered a strong, if slow, trend at the start of the second quarter of 2022, according to April data. Firms reported a slowdown in incoming business expansion while growth in production levels remained broadly unchanged during the month. Awaiting Italian data, Japan’s double-digit decline in new car sales continues: eighth consecutive month (-15% year-on-year), according to data from the Association of Automobile Dealers. serious. there TSE It fluctuated above and below parity, finally closing down 0.1%.
Recorded from the ancient continent Retail sales decline in Germany Which in March fell 0.1% from the previous month. The decrease from the previous year was 2.7%. The consensus saw a growth of 0.3%. In February, the figure had seen an increase of 0.3%.
Weak scenario affects prices petroleum Which is down 3% in the morning, retreating further from the recent peak as concerns about slowing economic growth in China, the main importer of crude oil, outweighed fears of supply disruptions due to the looming European embargo on Russian oil. West Texas Intermediate crude futures lost 3.13% to $101.41 a barrel, and Brent crude futures lost 2.7 percent to $104.28.