The global financial storm intensifies, and with it the appetite for safe havens. investorsmoved by arisk aversion unprecedented, they look with increasing interest in German government bondsconsidered bastions of stability in a sea of uncertainty. As a result, the spread between the Italian 10-year BTP and the German Bund continues to widen, reaching new peaks.
Turbulent day for markets, spread soars
At the opening of trading, the yield spread between the Italian 10-year BTP (Isin IT0005560948) and the German Bund It jumped to 153 and 154 basis pointscompared to 150 at the close last Friday. This movement mainly reflects a drop in Bund yields, which currently yield 2.10%, while the yield on Italian BTPs remains almost stable, going from 3.63% to 3.64%.
The day has just begun, and it looks intense and full of tension. The holding of the Italian bond shows relative stability, but it is the attraction of the Bund as a safe haven that most influences the market, widening the gap between the two securities.
Nikkei hits historic plunge, worst since 1987
After Black Friday, we have a Monday to forget. TheNikkei Index recorded a dramatic 12.4% dropmarking the biggest single-day decline since “Black Monday” on October 19, 1987. The weakness of the yen and disappointing employment data from the United States intensified the fears of a global recessionleading investors to react with massive selling.
The turmoil in Tokyo quickly spread to other Asian stock markets. Hong Kong’s Hang Seng Index took a significant hit, losing 1.59% at the open. Similarly, Singapore’s Straits Times Index fell 2.5%, reflecting anxiety over global economic instability.
Asian and Geopolitical Influences, After the Collapse of Tokyo
It is not just economic performance that is driving this rush to safe havens; geopolitical tensions are immediately linked to these results. Asian stock markets, led by Tokyo and Seoul, recorded declines, a warning signal that prompted investors to seek safety elsewhere.
The world is watching with apprehension the developments in the Middle East, where the threat of a military attack by Iran on Israel is making the financial markets wobble. These events have triggered a widening of the spread, which on the electronic markets opened at 153 basis points since the results of Friday.
Risk aversion is not limited to Europe’s borders. Even the US government bonds show a decline in yieldsdown around 10 basis points. This highlights a global trend toward caution, with investors turning to less volatile stocks amid growing economic and political uncertainty.
Cryptocurrency Crisis: Bitcoin in Free Fall
The cryptocurrency world has not been immune to the global sell-off. Bitcoin has suffered a sharp decline, falling below $55,000, with a loss of 10% in the last 24 hours. This negative trend has been further accentuated by the stock market crash, which has led to a total loss of $313 billion in the cryptocurrency market in the last three days.
