At the end of this incredible trading day, you can breathe a sigh of relief for the narrow escape. Or you may be saddened by a disappointing conclusion after an almost unbelievable afternoon recovery.
Today the markets experienced a daring day. News triggers panic on the stock exchange and Piazza Affari risks collapsing, then recovers and falls again. A statement rocked European equity markets and kept traders in suspense. Until mid-morning it was thought that the stock markets could collapse. Then suddenly there was a recovery and the European markets started to rise, until the negative start of Wall Street.
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What triggered the sales on the stock markets today was an imprudent statement from the CEO of Moderna, one of the manufacturers of the Covid vaccine. According to Stephane Bancel, it will take a couple of weeks to see how effective the vaccines are against the Omicron variant. Furthermore, the CEO of Moderna argued that the effectiveness of vaccines is decreasing.
These statements were enough to make the Asian stock markets close down and the European ones to open deep in the red. All the main lists of the Old Continent at the start of the session were down by 1.5%. Fortunately, a slow but steady recovery began in mid-morning, which allowed the opening losses to be almost eliminated by mid-afternoon.
News triggers panic on the stock market and Piazza Affari risks collapsing
The same fate befell Piazza Affari which started badly and lost almost 2% in the morning. The rise of Diasorin, best title in the middle of the morning, testified that to hold back Piazza Affari were the fears about the effects of Omicron. Fortunately, the recovery started on the Italian Stock Exchange which brought the index even slightly up at the beginning of the afternoon.
Probably the many positive news about our economy weighed on the rise in prices and were released today. The definitive reading stopped the GDP increase in the last quarter at 2.6% while on an annual basis the growth was revised to 3.9%. For the next year, the estimates of the investment bank S&P foresee a growth of 6.4%, a marked increase compared to the first estimate of 6%. Finally, ISTAT certified that the increase in the turnover of services in Italy in the last quarter was higher than that of the last quarter of 2019.
The only negative note in the midst of these positive notes is that of inflation which is galloping. In November, consumer prices in Italy rose by 3.8% to their highest levels since September 2008. In October, inflation was 3.0%.
Too bad that the recovery of the Milan Stock Exchange has stopped at the most beautiful. The index fell again after going positive. The Ftse Mib (INDEX:FTSEMIB) at the end of the session closed down by 0.8%, prices ended at 25,814 points.
Deepening
The point about the markets
