Volatile day for Piazza Affari as well as for the BTPs thanks to the consummation of the fall of the Draghi government and the looming of early elections in a couple of months. The closing of the Ftse Mib dropped 0.71% to 21,196 points. The BTP-Bund spread is further widening with a shot up to 238 basis points after the details on the anti-spread shield announced by the ECB. The European Central Bank, which today raised rates by 50 basis points, approved the Transmission Protection Instrument (TPI) aimed at countering unjustified, disordered market dynamics that seriously put monetary policy transmission across the euro area is jeopardized. The extent of the ICB purchases, the ECB specifies, will depend on the severity of the risks for the transmission of monetary policy.
“The ECB has decided to follow the Fed’s path by front-loading the rate hike and at the same time reducing the importance of forward guidance, without providing, as it did in June, indications on the extent of the next hikes and tying these decisions to the data that will arrive month by month. Regarding the TPI program, the market probably did not like the presence of numerous conditionalities that make it inflexible ”, comment the analysts of MPS Capital Services.
Strong sales in Piazza Affari especially on banks that were unable to ride the assistance of the ECB rate hike as the Italian political crisis has exacerbated the concerns about Italy leading to a decisive widening of the spread. Unicredit (-3.37%) and Intesa (-2.77%) stand out among the worst performers of the day, who will remove the veils from the quarterly accounts next week.
Among the big companies, both Enel and ENI fell with drops of about 1.5%. Very bad today also Leonardo (-3.92%) and Poste (-4.88%).
Also suffering from the fall of the government is TIM (-4.55%) which slipped to new historical lows of up to 0.215 euros. In fact, the political crisis risks delaying the times for the single Tim-Open Fiber network.