Home Business The blackest day of the year for the stock exchanges, panic selling with oil at -13%. Ftse Mib sinks to -4.6%

The blackest day of the year for the stock exchanges, panic selling with oil at -13%. Ftse Mib sinks to -4.6%

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Black Friday in all respects on the markets. Coinciding with Black Friday which marks the start of the pre-Christmas shopping season, the markets have been overwhelmed by the emergence of a new Covid variant that could trigger a new spiral of blocks. On Wall Street, the Dow Jones fell over 1,000 points with a daily decline of nearly 3%. Panic selling among commodities with WTI crude oil at -13% below $ 70.

To trigger the maximum alert on the markets was the discovery in South Africa of a new variant, considered extremely more contagious than the Delta variant. The variant scientifically called B.1.1.529, unofficially renamed Nu, would present according to experts 32 different mutations in the spike protein.

L’World Health Organization (WHO) today called an extraordinary meeting to decide whether to declare the new Nu strain as a “variant of concern, VOC” effectiveness of measures, tests, treatments or vaccines). Meanwhile, the United Kingdom has already taken measures, closing the borders to six African countries: in addition to South Africa, flights from Namibia, Lesotho, Eswatini, Zimbabwe and Botswana have been suspended. Italy has also decided to block flights from South Africa.

Beginning of a deeper correction?

Analysts wonder if today’s crash marks the beginning of a deeper correction. According to Emmanuel Cau, head of European equity strategy at Barclays, resilient growth and patient central banks should continue to provide amortization over the medium term, while investors have ‘dry dust’ to buy on weakness. “The key is to find out if the current vaccines remain effective against the variants or not – continues the expert -. The uncertainty of Covid could force central banks to err on the side of caution “.

Milan derails with discounts of over 6% for some big names

At the end of the day, the Ftse Mib index recorded -4.6% in the area of ​​25,852 points, on the lows of the day, with banks and energy stocks at the bottom of the list. Among the other asset classes, oil fell by more than 7%, cryptocurrencies also hurt while ‘safe haven’ currencies appreciated, primarily the yen and the Swiss franc.

Among the individual stocks in the Piazza Affari, a pronounced weakness of banking, among the sectors most exposed together with energy and industrials to the risk of a new abrupt halt in economic activity. Over -6.9% for Unicredit in the € 10.49 area, -5.75% for Intesa Sanpaolo.

Oil stocks are also very bad: Tenaris was the worst today with over -7%, -6.23% ENI. Not a day for Stellantis to -6.83% to € 15.56 despite Fitch improving the outlook on the group which passes from stable to positive.

On the opposite side, more than + 5.5% per Diasorin, the title that can most benefit from a worsening of the Covid emergency.

TIM is awaiting responses from the board of directors

In seal today TIM (-0.72% in the € 0.4805 area) on the day of the extraordinary board of directors. The CEO Luigi Gubitosi he would be ready to step back to facilitate a review of KKR’s offer. In the last few hours, the candidacy as CEO of Pietro Labriola, current number one of TIM Brasil.

Meanwhile, as reported by Bloomberg News, KKR and CVC Capital Partners are considering collaborating on an offer for Telecom Italia.

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