The rise in the spread continues. The yield differential between the BTP and the Bund now rises to 196 points, with the 10-year Treasury bond rate rising to 1.42%.
De Guindos, (ECB), yes to coronabond
Piazza Affari tries to change its pace with the Ftse Mib which briefly drops 0.36 to 16,762 and then slightly rises to -0.57% 16,725 points. In a particularly volatile list and between stop & go the banks are always the worst. Unicredit leaves 5.04%, Intesa (-4.25% theoretical). Mediolanum (-3.54%), Mediobanca (-3.14%). Instead, the pharmaceutical sector is running with Recordati (+ 5%) and Diasorin (+ 3.6%). Cnh (+ 3.8%), Italgas (+ 2.9%) and A2a (+ 2.4%) also performed well.
European stock markets weak at the start of the week after a shy short rise marked at the opening. The coronavirus emergency and the wait for the European managers’ confidence indexes (SMEs) immediately depressed the markets, after last week’s nothing done at the European Council on the topic of ‘coronabonds’ proposed by Italy, which however are reducing the drop. The worst is Madrid, which leaves 2.5% on the field, preceded by Paris (-2%), London (-1.5%), Milan (-1.2%) and Frankfurt, which limits the decline to 0.8%. Wall Street futures were negative in view of the Dallas Fed manufacturing index. Sales are concentrated in the banking and insurance sector and in Paris involve Bnp (-8.5%), Credit Agricole (-5.54%) and Axa (-2.7%). With the decline in metals, ArcelorMittal slides (-5.85%) and in the automotive sector Peugeot sells 4.8% and Renault 4.3%. In Frankfurt Lufthansa leaves 3.6% on the field, Daimler 3% and Deutsche Bank 2.5%, while in Madrid Santander (-5.75%), Sabadell (-5.37%) set the pace and Caixa (-5.6%). Under pressure in London Barclays (-10%), Lloyds (-7%) and BP (-6.8%), with crude oil on the lows. Abn Amro slides in Amsterdam (-7.7%), which has postponed the distribution of the dividend.
European banks under pressure on the stock exchange, with some that have already initiated the ECB’s invitation to halt dividends and buy back shares. Among these Unicredit (-7.13% to 7.3 euros) The sector index the Stoxx banks leaves 4.5% on the ground. Among the Italians, Intesa, which for a long time at auction loses 6.95%, is also bad. Ca ‘de Sass will meet the board of directors tomorrow with the ECB communication being examined. Sales also on the Dutch Ing which has implemented the indications by Frankfurt by freezing the coupon. The stock leaves 8.5% in Amsterdam. Same goes for Abn Amro who loses 7.3 percent.
Oil sinks to the lows of the past 17 years ending, albeit briefly, below the $ 20 a barrel threshold with the expansion of the Coronavirus emergency worldwide. Texas WTI crude is now trading at $ 20.7 with a 3.63% drop, affected both by the slump in consumption due to the paralysis of the world economy and the price war between Russia and Saudi Arabia. Brent also drops -5.6% to $ 23.53.
Coronavirus is still holding back Asia – Another suffering session on the Asian squares with fears that the Coronavirus pandemic may last for months. Oil sinks to the lows of the past 17 years ending, albeit briefly, below the $ 20 a barrel threshold. Tokyo loses 1.57%, holds Hong Kong (-0.69%) while Shanghai loses 0.89% and Shenzhen 1.79% with the Chinese Central Bank which has decided to surprise cut 20 basis points, at 2.20%, the 7-day reverse repo rate to ease pressure on the economy. Among the other Seoul is flat while Sydney bounces (+ 7%) with new stimuli for the economy. The government has earmarked $ 80 billion to safeguard jobs. The futures on Europe are positive. The health of companies and consumer confidence are the two indicators expected by the markets to perceive the situation in Italy but also in the rest of the Eurozone.