December 3, 2021

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A week marked by nervousness on European stock exchanges. Between Covid and crude oil, Milan loses 1.4%

(Il Sole 24 Ore Radiocor Plus) – A nervous week on European stock exchanges, between the return of Covid, with the fourth wave already leading to a new lockdown in Austria, and attempts to calm oil prices, with the United States and China poised to take an impact. Reserves to stop the rush of gasoline prices. In the background, doubts about the name of the future Fed chair and the possible tightening of monetary policies to try to cool inflation. This week’s tally ended with a meager booty for the main markets of the Old Continent, which in many cases is losing ground compared to the previous Friday. Among the worst are Milan, which scored in eighth place with a final balance in the “red” with 1.4% with Madrid (-3.6%) and London (-1.7%). The Stoxx 600 stops slightly below par (-0.1%) while Amsterdam is slightly above (+0.2%). The best, albeit without much momentum, are Paris (+0.3%) and Frankfurt (+0.4%). In the Ftse Mib, it was mainly the oil majors’ hits, following crude, with Tenaris (-8.2%) and Saipem (-6%) in the front row. Nexi was also infected, leaving 7.5% on the restaurant in five sessions. In the doldrums for banks – whose speculative allure associated with mergers appears to have abruptly halted after the “black smoke” between UniCredit and Mps – the best results are then brought home by Tim (+7%), whose race in particular relates to potential rumours. About the solution of the single fiber optic network profile, Ferrari luxury (+5.1%) and Campari drinks group (+3.1%).

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The specter of new closings shakes the markets on Friday in the red zone

scary ghost from Close It reappears in European markets, sending the lists “red” in the news that Austria is heading for a three-week pause, in an attempt to curb the fourth wave of the Covid virus, with fear that it will soon touch Germany (where in Bavaria the situation is already at the limit maximum). Anti-Covid lockdowns that could undermine an already fragile European recovery, and dampen global energy demand, as evidenced by the crude oil crash. In a session also marked by options technical maturities, sales particularly weighed on banking stocks, which are among the most trend-sensitive in the “scale” of the economy, with oil, airlines and the auto sector slowing sharply. At the end of a nervous day, the worst is the Austrian Stock Exchange (-3.1%) followed by the markets where credit institutions weigh the most, Madrid (-1.7%) and Milan (-1.2%). Meanwhile, Paris fell 0.42%, Frankfurt fell 0.38% and London 0.45%.

Wall Street thwarted a new record for the Nasdaq index

Against Wall Street, with the Dow (-0.75%) and S&P 500 (-0.14%) closing negative, while the Nasdaq closed +0.40 percent. The negative impact is the new wave of Covid-19 cases in Europe, with new restrictions and partial lockdowns, and inflation fears. On the political front, the House vote on Building Better has been postponed until today, the nearly $1,700 billion plan with strong support from President Joe Biden, which provides for interventions for health care, education, climate, immigration and taxes. Yesterday, the Congressional Budget Office – the federal agency that provides economic data to the US Congress – announced that it expects the law to increase the federal deficit by $367 billion over the next decade. But according to the government, the plan will not add another deficit, but, on the contrary, reduce it by 112.5 billion. In the meantime, we’re talking about the federal debt limit, given the approaching deadline (mid-December) that the US will have to suspend or raise to avoid default: Senate Majority Leader, Democrat Chuck Schumer and Republican Minority Leader Mitch McConnell met yesterday to discuss command.

Strong sales on banks in Milan

The collapse of UniCredit (-4.1%) was recorded on Ftse Mib, which was particularly affected by the news from Vienna, given that the Bank of Austria is one of its most important subsidiaries in Europe. Leonardo fell (-3.5%) due to doubts related to the sale of Oto Melara. Among the bank stocks, Intesa Sanpaolo (-3.4%), Bper (-2.7%) and Banco Bpm (-2.6%) lost their stakes. The weakness in oil was felt by major energy companies such as Saipem (-3.1%) and Tenaris (-2.6%). Medications such as Recordati (+2.7%) and DiaSorin (+2.4%) are saved, while Tim rebounds (+3.7%). The good performance of pharmaceuticals across Europe, as well as in Milan, is recorded on the possibility that the increase in infections and hospitalizations will consequently double the volume of tampons and the need for medical treatments. Off the main price list, Autogrill is slipping (-6.3%) due to the potential for new restrictions across the Old Continent. Other stocks in the opposite direction include luxury with Ferrari (+2.2%) and high-tech with French-Italian group STMicroelectronics (+0.8%) following the Nasdaq’s good performance on Wall Street.