There are two themes that characterized the first session of the week. Fears that are likely to affect equity markets throughout the week. Unfortunately, one of these is not positive. A negative scenario is emerging that could weigh heavily on the European stock exchanges, for the next sessions.
False start for almost all European price lists. But Piazza Affari …
Uncertain start of week for European stock exchanges. And already from the first session, what may be the dominant themes of the week that has just begun are outlined. The first is the issue of vaccines. Today the European squares have finished in red, or just above par, like the Milan stock exchange. The lists of the Old Continent were held back by the problems that emerged on the AstraZeneca vaccine. Italy, Germany, France and Spain have temporarily suspended vaccinations with this drug, pending the judgment of the EMA.
If the judgment of the European body confirms the suspension, there would be a further slowdown in vaccinations in Europe. There would be negative repercussions on the economic recovery, especially in this phase in which infections are regaining strength. This scenario does not appeal to the market which has been betting on a recovery of the European economy for some time.
The second theme: the rise in oil
The Chinese economy, on the other hand, appears to be in good health, which in January and February saw higher than expected growth in industrial production. The heavy industry growth of the world’s largest crude oil importer pushed oil to new highs of the year.
The WTI oil future, the one mined in the US, reached $ 65 a barrel, after hitting 68 last week.
Brent, mined in the North Sea, is close to $ 70 per barrel. This upside is driving energy-related stocks.
Today Tenaris gained 4.7% reaching 6.29 euros. Snam also rose by 1.2% and Italgas by 0.8%.
Italian pharmaceutical stocks to the rescue
A negative scenario is emerging that could weigh heavily on European stock exchanges. But this scenario could favor Recordati and Diasorin. Both stocks did better than the index today. The former gained 1.8% and the latter 1.5%.
Precisely the difficulties of AstraZeneca, make the market bet on possible investments on these two companies for the production of local vaccines.
Returning to the performance of the Italian stock exchange, at the end of the session the Ftse Mib index (INDEX:FTSEMIB), closed up 0.1% at 24,140 points.
Deepening
This the multidays analysis and the analysis of international markets by the ProiezionidiBorsa Research Department.
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