The shadow of the Delta variant it stretches out on the price lists and sinks the European stock exchanges which – in the session of July 19 – suddenly see the hopes of a rapid post-Covid recovery fade. The new thud of the Petroleum, after the “white smoke” of Opec + which gave the green light, not without tension, to a gradual increase in production, despite doubts about the stability of global energy demand. In the background, uncertainties remain about the moves of central banks and especially the Fed in light of the rise above inflation expectations. In this climate, the worst is Piazza Affari which, at the end of a difficult session, sees the FTSE MIB index slide to 23,965 points, a minimum not seen since mid-May. London is no exception (-2.3%) where the “freedom day” has started from the restrictions just as Prime Minister Boris Johnson is in self-isolation due to a contact with a positive.
Among the worst lists at the end of trading were the CAC 40 in Paris, the DAX 30 in Frankfurt, the IBEX 35 in Madrid and the AEX in Amsterdam.
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Thud on Wall Street
Wall Street closes sharply. The Dow Jones lost 2.09% to 33,963.29 points, in what is the largest decline since October. The Nasdaq lost 1.06% to 14,274.98 points while the S&P 500 left 1.58% at 4,258.80 points, the largest decline since May. Investors are alarmed by the increase in cases of contagion linked to the variants of Covid-19, despite the massive vaccination campaign and fear a brake on economic growth expectations. The US, in the last week alone, has recorded an average of 30 thousand new cases a day. Furthermore, there are fears that the sharp rise in prices could reduce consumption and accelerate the Fed’s decisions on a possible withdrawal of aid. President Biden, in a press conference on the trend of the economy, tried to reassure the markets by insisting on the “temporary nature” of inflation, also linked to the challenges in the supply chain, and pushed Congress to approve the plan on public investments in infrastructures to relaunch the economy and competitiveness.
Tim slips in Piazza Affari, banks are down
In Piazza Affari at the end of the session, Telecom Italia slipped, after the cut in the guidance on the EBITDA by the end of the year (also) in the light of the agreement signed with Dazn. Regarding the common fiber optic network, the number one, Luigi Gubitosi, from the pages of Corriere della Sera he reiterated that it is “a great opportunity to save and it is indisputable that the optimal use of existing structures would give certainty on the achievement of the coverage objectives by 2026 indicated by Minister Colao”.
Utilities, in particular Enel, penalized by the ex-dividend date, and Italgas were bad. Negative closure for the holding Exor and the banks, starting with Banca Pop Er. Only the pharmaceuticals are saved, with Diasorin supported by the fact that the increase in cases from Covid-19 and the introduction of restrictions and Green Pass will favor the use of swabs to detect the presence of the virus, despite the continuation of vaccination campaigns.