Milan Stock Exchange Opens Sharply Lower, Asians Jingle – Economy

Milan Stock Exchange Opens Sharply Lower, Asians Jingle – Economy

The Piazza Affari Index started a sharp decline as the Ftse Mib Index started trading down 1.61% to 23,887 points. A strong start for European stock exchanges, which dismisses concerns about the spread of Covid in China and its impact on global growth in a context of already high uncertainty and anxiety due to accelerating inflation, monetary tightening and the war in Ukraine. Paris initially lost 1.98% despite Emmanuel Macron’s victory in the French presidential election, and Frankfurt and London slipped 1.65%.

The spread between the BTP and the German Bund widens to 172 basis points, nearly three points more than the closing date on Italy’s eve despite Italy’s rating being confirmed by the S&P last Friday. Italian 10-year bond yields fell 6 basis points to 2.602%, a drop in all sovereign government bonds, which were bought by investors in the context of a generalized flight from risky assets.

Concerns about the economy due to the Covid-19 wave plunging Chinese stock exchanges: The Shanghai Composite Index fell 5.13% to 2,928.51 points, while the Shenzhen Composite lost 6.48%, collapsing to 1,790.03 points.

Oil plunges sharply in international markets on fears of Covid’s progress in China And the strategy Beijing is implementing to counter its spread, which risks affecting global growth and the Chinese giant’s demand for crude oil. West Texas Intermediate crude oil fell below $100 a barrel (-3.3% to $98.8) while Brent North Sea lost 3.2% to $103.28. Over the weekend, Shanghai recorded a record death as Beijing authorities warned that the virus was “silently spreading” and imposed mass testing in a district of the capital.

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Raw materials are crumbling in international markets While the progress of Covid in China and the harsh response of the Beijing authorities are worrying investors about demand for the goods, in a context already made uncertain by the price rush, monetary tightening and the war in Ukraine. Copper futures with delivery in May (China/Shanghai futures exchange) are down 8.4%, aluminum contracts with June delivery up 50% while iron contracts are down 48% on Dalian Commodity Exchange, another Chinese commodity market.

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