Home » EU stock exchanges, start in heavy red: the energy crisis weighs on. Spread still above 250

EU stock exchanges, start in heavy red: the energy crisis weighs on. Spread still above 250

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EU stock exchanges, start in heavy red: the energy crisis weighs on.  Spread still above 250

Difficult session start for European stock exchanges. In Europe, risk aversion linked to the danger of recession is also fueled by the possible consequences of the tax cuts announced by the British Prime Minister Liz Truss (Moody’s warned that they will have a negative impact on the creditworthiness of the country) and by the uncertainty on the evolution Italian politics. The race in the price of gas after the damage to the Nord Stream gas pipelines remains in the spotlight: in Amsterdam the October future rises by 12% to 208 euros per megawatt hour. The scenario thus rewards the dollar and triggers sales on shares and government bonds: the BTp-Bund spread is at 253 basis points, on the highest since the spring of 2020, with the Italian ten-year yield at 4.81%, updating the top since September 2013. In Piazza Affari the Ftse Mib drops 1.5% and in the rest of Europe Frankfurt loses 1.14%, Paris 1.15%, Amsterdam 1.74% and London 0.52%. Among the main Milanese stocks, StMicroelectronics (-5.03%), UniCredit (-3.01%) and Leonardo (-2.56%) were particularly bad. Above the parity Tenaris (+ 0.76%) and Hera (+ 0.42%), which recovered after the weakness of the eve. On the currency, the euro remains weak at $ 0.9550 (closing 0.9598 yesterday), close to the 20-year lows reached on Monday. The single currency is also worth 138.22 yen (139.05), while the dollar / yen ratio is 144.74 (144.82). The pound is still under pressure: one pound is worth $ 1.0664 from 1.0760 yesterday at the close and stands at 0.8952 for one euro (from 0.8928). Oil lost its share, with November Brent down 1.38% to $ 85.08 a barrel and WTI down 1.31% to $ 77.47.
The Tokyo Stock Exchange closed a negative session in the red for all Asian markets, with the Nikkei at the lows of the last three months after yesterday on Wall Street the SP & 500 slipped to a low of almost two years. In early trading in London, the Ftse 100 index loses 0.99% to 6,915.31, Frankfurt drops by 0.98% to 12,021.20 points, Paris drops by 0.81% to 5,707.18 points in Milan by 0 , 92% at 20,767.88 points.
What the markets expect
The fears of a global recession ignited by the monetary tightening initiated by the central banks to counter the advance of inflation remain at the center of the attention of the markets. There is expectation for the intervention of the ECB president, Christine Lagarde, who will speak in the morning and other advisors while in the afternoon it will be the turn of the number one of the Fed, Jerome Powell. The stock exchanges yesterday closed a volatile session in the red, driven downwards also by the surge in gas prices, which at the Ttf in Amsterdam is still rising and at the start reaches 230 euros per megawatt hour (+ 13%). And it is precisely on the energy front that the eyes of investors are focused today, after the gas leaks and the strong explosions that affected the Nord Stream 1 and 2 gas pipelines, perhaps due to sabotage. Even today the European lists should continue in the negative trend, in the wake of the Asian markets to the downside after Wall Street closed in the red.

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