The winds of war in Ukraine worry the markets. The difference between BTPs and the Bond starts the first session of the seventh session with a jump and reaches 171 points and then falls back to 167 points, compared to 165 points at the conclusion of Friday. According to Bloomberg results, this was the maximum since June 2020. In the middle of the morning the yield gap between government bonds widened again to reach 169-170 points again and then, In a real swing, falling back to 165. But the 10-year yield remained virtually unchanged around 1.9%, indicating a rise (with a subsequent dip in the yield to 0.19% and then slightly higher, at 0.24%, compared to 0.29% last Friday). ) of the package, safe haven security par excellence when the markets red alert continues. So investors are turning to German quality, buying more bonds, but not asking Italy to pay more for now.
Meanwhile, Piazza Afari started the session with a loss of 2.34% at 26,334 points and then fell again until it lost 3.5% and then 3% in the early afternoon. The Milan market recovered in the second part of the session, containing losses of less than 2%. Banks and utilities throw their weight on the Milan Stock Exchange. Oil records a rise to $ 95.7 a barrel, Brent, and natural gas also recorded new highs. Other major European stock exchanges also opened with strong declines, following the close with minus Tokyo, where the Nikkei lost 2.23%. Among the European financial centers, Paris opened with -2.34%, Frankfurt fell 2.40% while London fell 1.32%.
Here is a map of major blue chip losses. In Avary Yard, banks struggle in the early part of the day – always in the eye of the storm when things go wrong – with Mps (-6.6%), which is back in circulation after the volatility auction was suspended. Banco Bpm (-7.1%) and Bper (-6.2%) are also bad, waiting for the board to make the bid to Fitd for Carige (+0.1%). Among the credit institutions experiencing a decline are Unicredit and Intesa (-6%). Bankers regained ground in the afternoon hours. A similar fate befell utilities and energy. In A2a Red (-2.9%), Enel (-2.8%), Eni (-2.2%), Hera and Arak (-2%). In contrast, a hump (+0.3%) that then recovers up to +1.7%. Heavy seating, in Phase 1, also for Tim and Atlantia (-4.1%) and Stm (-3.6%).
From a longer perspective, all bonds and government bonds as well as price lists are discounted in advance, as is always the case in the markets, as the pace of economic policy approaches.. In the US, the first rate hike in March, followed by two or three more Fed interventions by the end of the year, is virtually certain. Some analysis houses even assumed it could be up to six. In Europe, where inflation is running but not as fast as in the US, where the latest poll is close to 7.5%, there is no exact date for the new cycle, but recent statements by Christine Lagarde, President of the European Central Bank, were nervously greeted by markets. Higher interest rates, even if it heralds an economic recovery, is never an easy move for those who are investing.
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