MILANO – 9:30 am. Tough day for equity markets: trading in Europe starts in the red and Milano marks a decline of 0.95%, with MPS suspended after the board of directors which approved the draft financial statements with a view to business continuity despite the “significant uncertainties” that hover over the Sienese institute. While London cede l’1,2%, Paris 1.45% e Frankfurt 1.4%. The Asian indices recorded the worst session since last March, with a real thud for Tokyo which closed down 3.99 percent, in the wake of last night’s red a Wall Street where the Dow Jones lost 1.8% and the Nasdaq 3.5%. American futures still indicate a weak prospect for the US stock market.
In Asia, sales mainly concerned the technology sector: it was a real sell-off, a race to sell shares, which however reached the peak of a period of substantial increases that had led the shares of the area to highest ever. Today they also went red Hong Kong (-3,2%), Shanghai (-2,12%), Shenzhen (-1,79%), Alone (-2,8%).
Inflation: fear returns to the US, a shadow over the recovery
by our correspondent Federico Rampini
February 25, 2021-
Behind this market correction there is the movement that has been feeding in the trading rooms for some sessions: the prospect of a return of inflation – motivated by the economic recovery combined with the vaccination campaign and the wide availability of liquidity on the markets – is pushing up the yields of government bonds. THE Treausury Americans for example, they reached 1.6% and for some, the phases of 2013 in which the Federal Reserve suggested an imminent tightening of its Quantitative easing, generating a sharp decline, precisely in Asia, come back to mind. But, in this case, the number one of the American central bank, Jerome Powell, assured in his hearings that inflation is not yet a concern and a premature withdrawal of stimuli will not happen.
Inflation: Rising yields attract the “bot people” but are a risk to public debt
by Raffaele Ricciardi
February 26, 2021-
Meanwhile, the hike in bond rates acted as a “trigger” for investors who “were looking for a reason to initiate a correction in the equity market,” explained JP Morgan AM’s head of Asian market strategy Tai Hui. to Bloomberg. “The Asian tech sector and all those who outperformed could mark a larger correction.”
Doubts remain, especially in the Eurozone, on how substantial the rise in prices is. Today, for example, inflation in France slowed down in February to -0.1% after rising by 0.2% in January and rising to + 0.4% on an annual basis from + 0.6%.
It spread between BTP and German Bund opens higher at 104 points, from 103 at the close on Thursday, with the Italian 10-year yield at 0.78% on the secondary market.
Movements in bonds scared equities and rewarded the US dollar as a safe haven. The euro changes hands at 1.2154 dollars and 129 yen and the dollar has risen to the top for six months against the Japanese currency: 106.18. The pound falls to 1.3930 against the dollar.
Among the effects of the rise in bond yields and the high dollar is the trend oforo. The safe haven asset par excellence falls to an 8-month low: the price of gold falls 0.6% to $ 1,765.70 an ounce.
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