Difficult morning for the Bag from Milan which continues its downward trajectory weighed down by the poor results of the banks, disadvantaged by the excessively high interest rates in the United States. After opening just below a one-percent decline, selling continued to dominate trading, causing the main indexes to lose 4%.
However, it is not only the banks that are in difficulty this morning on the Italian financial markets. The poor start of Tim, which ends up losing 9%. After selling the network to Kkr, the true size of the Italian telephone company has yet to be clarified.
Milan Stock Exchange Continues to Fall: What Happens to Banks
Bad morning for the Milan Stock Exchange August 5. The Italian stock markets follow the European and Asian ones in a long decline that has characterized all the financial markets since the middle of last week. The reason behind this slowdown is the fear of a growth crisis in the United States, heralded by the disappointing data on employment, which could lead to the Fed to cut interest rates earlier than expected or more significantly than expected, risking higher inflation.
Precisely for this reason, the banks in Italy are the ones that are trembling the most. Nexi And Monte dei Paschi lose 5.6% and 4.4% respectively, but they are also doing badly Mediolanum, Fineco And Unicredit with all declines exceeding 3%. This slowdown has sunk the main Italian index, the Ftse Mib, which has seen declines of up to 4% during the morning and then settled between 2.8% and 3%.
However, this is the third consecutive day of decline for the Bag Italian. The main problem is uncertainty, which is not only due to the US data being below expectations. The tension between Iran and Israel could bring further instability to the Middle East, the Japanese stock market has fallen by 12%, the big US technology companies are recovering. In addition, other important companies listed on Milan they are going through a difficult time.
Tim falls again on the stock market: who is in difficulty
Among these companies, the most prominent one is certainly Tim. The former monopolist of Italian telephony is going through a complicated period of downsizing that has led to numerous drops in the value of the company’s shares on the stock exchange. The start of the day on August 5 was terrible, with a downward peak of 9% only partially recovered during the course of the day, with a stabilization around 4%.
Tim’s difficulties mainly derive from the sale of the Italian network to the American fund Kkr. Before this decision, despite being in great economic difficulty, Tim was a company incomparable in size to its competitors in the Italian telephone market. Now the management must find a new corporate structure that can guarantee sustainability, but which can hardly do without a clear downsizing.
But it’s not just Tim, in addition to the banks, that weighs down the Italian Stock Exchange. The semiconductor giant is also in trouble Stmicroelectronics And We know, which lose 4.4% and 4.7% respectively. Similarly, Iveco Group slows down significantly, over 4%.
