After a quiet and uneventful session, the Milan Stock Exchange closed with a limited decline. A decline in line with the European stock exchanges. Meanwhile, dramatic news has come from the economy, particularly on the industrial production front.
Realizations start and the Milan Stock Exchange slows down
After the repeated increases of the previous sessions, the day of achievements has arrived for Piazza Affari. The Milan stock exchange has sold some ground, but in a very limited way. At the end of the session, the Ftse Mib (INDEX:FTSEMIB) closed at 23,300 points, down 0.5%.
The analysts of ProiezionidiBorsa had anticipated the hypothesis of the correction in the usual analysis that every morning anticipates the opening of the markets (the link to the article). In that analysis it was also indicated that at 23,250 points there was a support on which prices could have leaned.
This is exactly what happened in the first part of the session. Piazza Affari opened weak and after an hour and a half, the prices of the Ftse Mib leaned at 23,250 points, and then rebounded.
The profit taking weighed mainly in the first part of the day
Throughout the session they remained within the range between 23,250 points and 23,500 points. A movement that can be explained by the sales for profit taking which started immediately at the opening.
When the short-term traders have all sold, the downward pressure on the market has ceased. With no reason to sell, and with no bullish cues, prices stabilized for the rest of the day.
The weak opening of the Wall Street stock exchange did not help liven up the session in the final part. The US stock market also seems to need a few sessions of pause after the incessant rises.
Thanks to the Draghi effect, Piazza Affari held up despite a dramatic economic figure
The Draghi effect continues to be felt despite the negative session. In Europe it has not gone better. The German Dax index closed 0.3% lower, London and Paris gained 0.1%. Heavy Madrid down by 1.5%.
In light of these results, the decline in the Italian stock market seems to be quite in line with the European context. But it could have been worse, if the markets had paid attention to the figure of industrial production which fell by 11.4% in 2020. But thanks to the Draghi effect, Piazza Affari held up despite a dramatic economic figure.
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