European stock exchanges in the red and worsening, with the indices that also pay for the news from the United States, where the National Institute of Allergy and Infectious Diseases has questioned, with an official note, the data of the US trials on the effectiveness of the Astrazeneca vaccine (79%) stressing that they could be the result of “outdated information”. Added to this are the concerns about the new lockdowns in France and Germany that jeopardize the restart of the economy in the second half of the year: a prospect that penalizes crude oil, which accelerates downwards with Brent below 63 dollars.
Wall Street falls, Treasury rates also fall
Indices also down on Wall Street in the early stages of trading: exactly one year ago, the US indices reached their lows, with a 30% drop in 22 days caused by the coronavirus pandemic; since March 23, 2020, the Dow has gained more than 75%, the Nasdaq Composite more than 90%, the Russell 2000 – the index of small cap companies – 126%. Government bond yields continue to decline, with the 10-year yield falling below 1.65%, about 10 basis points from the 14-month high reached last week.
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The attention is all for the comments of the Fed chairman, Jerome Powell, and of state secretary, Janet Yellen, during the hearing before the House Financial Services Committee. In the opening speech, already released by the press, Powell will reiterate that the Fed “will continue to provide economic support as long as necessary”, because the recovery “is far from being completed”. Powell will later say that the recovery, however, “has made progress faster than expected and appears to be strengthening”; furthermore, he will ensure that the Fed “will not lose sight of the Americans still affected” by the crisis, “including minorities, who have been affected. in a particularly harsh way. “” The situation has improved a lot“Compared to a year ago and”the worst was averted thanks to the swift and vigorous actions of Congress and the Fed, ”will be his words. Yellen will recall that there are still “nearly 10 million fewer jobs” than the prepandemic peak, that “22 million people say they don’t have enough food to eat.”
Ferrari’s race continues, well defensive and pharma
In Europe, at the sectoral level, cars are penalized, energy and raw materials are also bad. At Piazza Affari the Ferrari race continues and defensive stocks such as pharmaceuticals such as Diasorin and utilities travel to the front row. Weakness on banks and oil with Saipem losing ground despite the big order in Qatar. At Piazza Affari the focus is always on Atlantia, with the end-of-month deadline on Aspi approaching, while Cnh Industrial, which is among the most penalized stocks in Piazza Affari, slows on the more cautious prospects for the sector outlined yesterday by the conference call of Traton , a subsidiary of Volkswagen active in particular in commercial vehicles.