A famous adage goes: so much thundered that it rained. It is a saying that is well suited to today’s stock market day. In Europe, after several uncertain sessions, the decisive decline has arrived.
Whether it is temporary, or the start of a new bearish phase, it is still early to tell. But there are elements that can help us interpret what is happening. That’s why heavy sales on the Milan Stock Exchange are back today.
Piazza Affari, the worst in Europe
At this stage it is useful to understand why the stock markets fell today. If you understand the reasons for this decline, you can better understand its duration. Let’s start with the data, how the last session of the week ended.
Today all the stock exchanges of the Old Continent have gone down. The best was the German one, which limited its losses to 0.2%. The worst was Piazza Affari. The Ftse Mib index (INDEX:FTSEMIB) lost 1.5%, finishing at 22,088 points. Paris fell by 0.5%, London by 0.3% and Madrid by 1%. The only stock market in Europe that closed positively is the Zurich Stock Exchange.
Uncertainty rewards the most solid stock exchanges
By themselves, these data give us a clear picture of what happened today. Sales on the stock exchanges of the weakest economies and the most exposed economies were unleashed. Instead he bought himself on the stock exchange which offers more certainties. That’s why Milan and Madrid were the worst and Frankfurt and Zurich the best.
Today, the sales kicked off immediately at the start of the day because investors didn’t like Christine Lagarde’s words. Yesterday the President of the ECB had hinted at a possible limited use of Pepp, the plan to buy back government bonds on the market. A possibility that scares those who invest in Europe.
Because today heavy sales on the Milan Stock Exchange are back
For Italy, there were two other factors to worsen the picture. A note from the rating agency Moody’s, which left the door open to the possibility of a downgrade for our public debt. To which is added the complication of the political situation, with an increasingly weak government and the desperate search for a majority to survive.
The icing on the cake of the day was the jump in the spread. Today the spread between BTPs and Bunds jumped 5% to 124 points. Ten days ago it was 104 points.
Deepening
This the multidays analysis and the analysis of international markets by the ProiezionidiBorsa Research Department.
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(We remind you to carefully read the warnings regarding this article, which can be consulted who”)
