Difficult Thursday in the markets with Wall Street, however, which is still trying to rise again despite fears related to the delta variant and the upcoming tapering Fed. After a falling start, the S&P 500 and Nasdaq indices are now up by about half a percentage point. Goldman Sachs has cut economic growth estimates for the United States. The current quarter should mark a + 5.5% compared to the + 9% previously indicated thanks to the impact of the Delta variant. The impact on the economy should in any case be limited and Goldman has revised upwards the estimates for the 4th quarter (+ 6.5% from + 5.5%) and for the first two quarters of 2022.
The investment bank believes the Delta variant is having a greater-than-expected effect on growth and inflation due to its impact on consumer spending and production. By reflex Expectations are for spending on restaurants, travel and other services to decline in August. But it should be one short and modest setback.
Milan retreats, luxury and oil are the most affected sectors
In Europe, all stock exchanges closed in red. the Ftse Mib closed at -1.63% at 25,928 points in the aftermath of the FOMC minutes which highlighted the Fed’s conviction to start tapering by the end of the year.
Today’s negative sentiment is also fueled by the spike in COVID-19 cases around the world fueling fears of a slowdown in global economic growth. According to Emmanuel Cau, Head of Barclays European Equity Strategy, today’s movement is dictated by investors’ fears “that the best of recovery and liquidity are behind us and are becoming more cautious about their allocation”. Barclays believes solid earnings fundamentals and ample liquidity will push investors to buy the dip in the long run.
On the Piazza Affari parterre, a day to forget for luxury titles with Moncler worst title in the Ftse Mib with over -6%. Holes from the Ftse Mib also reported about -6% for Brunello Cucinelli, while -5% for Tod’s and Ferragamo. Fears of a slowdown in growth, and in particular in demand from Asia, are weighing heavily in these days on the luxury sector which is heavily dependent on Eastern markets.
Among the worst today also the titles of the Agnelli galaxy: Stellantis -3.56%, CNH -3.9% and Exor -3.46%. The oil stocks are also very bad (-4.64% Tenaris, -2.8% Eni) which also pay for the oil turnaround (in the sixth consecutive session down).
Among the financials, reductions of around 2% for Intesa Sanpaolo and -2.7% for Unicredit.