Last session of the week of passion for some Piazza Affari titles. The Milan Stock Exchange ended almost unchanged on a day that saw little movement on the European stock exchanges. Today our list has been stopped by two factors that have spliced the prices. One concerns the weak performance of the European stock exchanges, held back by some not very encouraging news on the economy of the Old Continent. The other factor, which turned off the bullish ambitions of Piazza Affari, was the umpteenth collapse of a stock sector. In today’s session, a rain of sales on BTPs causes 2 banking stocks to collapse which ballast Piazza Affari.
Italian GDP boom, never so good for decades
The Milan stock exchange ended the day with a fractional loss of 0.05%. The Ftse Mib (INDEX:FTSEMIB) closed at 26,875 points, practically on yesterday’s closing levels. But the session had a two-sided trend. After a happy start, prices began to decline and reached 26,600 points by mid-day. Here the scenario anticipated in the article occurred: “On the hunt for the record in Piazza Affari, this unrestrained title promises new leaps”.
Prices picked up some strength in the afternoon, despite Wall Street’s weak start and made up for the morning’s losses. It could have been a great day for the stock market had it not been for the collapse of banking stocks. Today ISTAT certified that Italy is experiencing a real economic boom. In Europe we are among the countries that are growing the most. In the third quarter, our GDP increased by 2.6%. Growth could be over 6% at the end of the year.
A rain of sales on BTPs causes 2 bank stocks to collapse which ballast Piazza Affari
If the Italian economy goes like a train, there is a real risk in Europe that steeply rising inflation could slow growth. The signs of the last quarter are pointing in this direction. The annual inflation rate in the Eurozone at the end of the year could be 4% and GDP in the third quarter only rose 3.7%.
The European stock exchanges reacted in a composed way to these data. The Euro Stoxx 50 index rose by 0.4% and the Paris Stock Exchange also closed with the same result. Instead the German stock market lost 0.05% and London lost 0.1%.
Rising inflation could prompt the ECB to intervene on interest rates earlier than expected. Yesterday the European Central Bank ruled out this possibility in the short term, but operators are starting to have some doubts. So today a rain of sales on government bonds has pushed up the spread between BTP and Bund, at most for 1 year. This leap caused Banco BPM and BPER Banca to sink and lost around 7%.
Deepening
