MILANO – 4.45 pm. Downward trend in the last session of the week for the European stock exchanges. Markets are weakened by the Fed chairman’s words yesterday Jerome Powell. The number one of the American central bank confirmed a rate hike of half a percentage point would be “on the table” at the next central bank meeting, scheduled for early May. While we continue to look at the evolution of the conflict in Ukraine, estimates are coming from Germany of what a stop to Russian gas would mean for the European economic engine: the embargo would cost 180 billion euros. To say it is the monthly bulletin of Federal Bankthe Central Bank of Berlin, for which a sudden interruption of supplies to the EU could dent economic activity by 5% this year.
Also waiting for new possible indications of the intervention of Christine Lagarde scheduled today, the European indices move downwards, also discounting the warning of the Monetary Fund which warns Germany, France, Italy and Great Britain against the risk of recession. Milano yields 2%, London loses 1.1%, Frankfurt moves back by 2.2% e Paris 1.9%. Also Wall Street it is weak: the Dow Jones fell by 1.4%, the S & P500 by 1.1%, the Nasdaq by 0.8%.
Investors also negatively recorded the two-speed trend of theSME index in the Eurozone. On the one hand, the composite advanced to 55.8 points in April (compared to 54.9 in March), the highest in 7 months. A leap, well above the threshold of 50 that separates contraction and economic expansion, assisted by the services index which advances to 57.7 (from 55.6 in amrzo), at the top for 8 months and against an expected 53.9. On the other hand, the manufacturing PMI slowed to 55.3 (from 56.5 in March and an expected 54.7), to a 15-month low.
Asia also ended the session down after Powell’s words. Tokyo closed at -1.63%, also down in Shenzhen (-0.4%), Hong Kong (- 0.4%), Seoul (-0.8%) and Mumbai (-0.6%) while countertrend Shanghai (+ 0.3%). On the Asian front, the Chinese central bank has promised greater support for businesses. Governor Yi Gang, speaking in video link to the Boao Forum for Asia, said monetary policy is in a “comfortable range” and is helping the economy. “We are also ready to support small and medium-sized businesses with more tools if needed,” added Yi.
On the currency front, the euro made little movement at the start of the day. The single European currency changes hands at 1.0843 against the dollar against the value of 1.0840 last night after the close of Wall Street. The yen is very slightly up against the euro at 138.75. Starting down for the spread. – The differential between BTP and Bund opens down to 165 points, compared to 166 points at yesterday’s closing, with the Italian ten-year yield falling to 2.59%, compared to 2.6% on the eve of
Among commodities, oil prices are falling. The price of WTI crude oil falls by 1.21% to 102.5 dollars a barrel. Brent also fell, dropping 1.25% to 106.9 dollars.