The main European stock exchanges all closed in negative territory. The Milan stock exchange also had a difficult day, but with losses less pronounced than other European markets.
The Ftse Mib closed the day at 33,682.26 points, marking a down 0.53%. Among the blue chips, it stands out Timwhich concluded trading with a rise of 2.31%, followed by Saipem (+2.2%), Diasorin (+1.9%) and Banca Mediolanum (+1%). On the other hand, the European luxury sector performed badly in the wake of fears over some economic data from China; Moncler recorded the worst performance, with a loss of 4.4%, while Brunello Cucinelli closed at -1%. The other losses of the day were Amplifon (-3%), Prysmian (-2.1%) and Interpump (-1.5%). The spread (difference between the yield of the BTP and that of the German Bund), falling to +139 basis points, with the yield on the 10-year BTP standing at 3.58%.
In the European stock market panorama, Frankfurt recorded a sharp decline of 0.83%, while London showed a substantially weak performance with a decline of 0.35%. Paris, on the other hand, was particularly under pressure, marking a strong decline of 0.98%.
Stock Market 0h12: Stock Market Declines Continue
Selling continued to dominate European stock markets, with Frankfurt down 0.7%, Paris down 0.83%, London down 0.85% and Milan down 0.46%, falling to 33,709.74 points at 12:00 p.m.
Stmicroelectronics and Moncler are under pressure. However, some gains are recorded, such as Saipem which rises thanks to new contracts signed in Saudi Arabia (+1.54). Banks also did well: Nexi stands out with an increase of 1.34%, reaching 6.352 euros, followed by Banca Popolare di Sondrio, up 0.96% to 6.83 euros. Other stocks on the rise include Banca Mediolanum (+0.74% to 10.94 euros), Finecobank (+0.71% to 15.54 euros), Intesa Sanpaolo (+0.31% to 3.723 euros), Banca Monte Paschi Siena (+0.28% to 5.038 euros) and Banco Bpm (+0.24% to 5.984 euros).
The BTP/Bund spread rises to 148.18 basis points.
Stock Exchange 0re 9: the crisis in America and China does not please European markets, opening in decline
Yesterday’s collapse of Wall Streetwith a significant drop in Nasdaq (-3.3%), negatively affects the opening of European stock markets, all in sharp decline. Frankfurt loses 1.31%, in Paris the drop is 1.14%, the Ftse100 0.83% and the Milan 1.05%settling at 33,509 points. The yield on the 10-year BTP falls slightly to 3.64%, while the spread with the Bund increases to 141 basis points, in a market awaiting various data, especially from the United States.
Many stocks in the red at Piazza Affari
Yesterday had started well for Milan and Europe, but the blow came in the afternoon from the United States, with negative data in the manufacturing sector that caused Wall Street to collapse and Europe to bounce back.
On the Milan stock exchange, they currently stand out Campari (+0.10% to 8.08 euros) And Saipem (+0.96% to 1.898 euros), the latter was rewarded thanks to the awarding of two offshore contracts in Saudi Arabia, as part of the long-term agreement with Saudi Aramco, for a total value of approximately 1 billion dollars.
The biggest declines in the morning were recorded by Stmicroelectronicswhich closed at 26,845 euros with a loss of1.85%. Moncler followed with a 1.47% drop, closing at 53.66 euros, while Brunello Cucinelli lost 1.38%, falling to 89.20 euros. Stellantis also recorded a 1.33% decline, settling at 14.412 euros. Other stocks in decline included Azimut (-1.26% to 21.98 euros), Prysmian (-1.20% to 62.54 euros), Ferrari (-1.10% to 438.90 euros) and Finecobank (-1.10% to 15.26 euros). Interpump Group (-1.09% to 38.24 euros) and Unicredit (-1.06% to 36.38 euros) closed the list.
Why are the stock markets falling?
A very complex day is expected for European stock markets, with general declines and difficulties for some stocks to reach the plus sign. All this is caused by yesterday’s collapse on Wall Street, in turn caused by the disappointing data on manufacturing sector and on construction spending in the United States.
The ISM manufacturing index, which measures the performance of the manufacturing sector in the United States, remained in contraction territory in August, coming in at 47.2 points, below expectations of 47.9 points, but up slightly from 46.8 points in July. This marks the twenty-first month of contraction in the last twenty-two. Meanwhile, construction spending fell by 0.3%, contrary to consensus forecasts for an increase of 0.1%. Ahead of the US unemployment data scheduled for Friday, September 6, the markets have returned to pessimism about a recession in the US economy.
And the tech sector was the one that suffered the most from all this data, with Nvidia hitting -9%causing a ripple effect in other companies in the sector. In these hours then a legally binding request arrived in the offices of Nvidia from of the Antitrust American to see whether they are using their dominant position to limit customers’ access to alternative suppliers.
But not only Wall Street: yesterday the stock market also lost many points Nikkei Tokyo which recorded a decline in -4.2%, the worst session since August 5. The August 2024 results do not help with the growth of the tertiary sector in China, which showed signs of slowing. The services PMI, compiled by Caixin, fell to 51.6 points, compared to 52.1 points recorded the previous month, and below analysts’ expectations of 51.9 points.
Spread at 147 points
At the start of the session, there was buying of Eurozone government bonds, with a consequent drop in yields. The yield on the benchmark 10-year BTP stood at 3.71%, slightly down from 3.74% at Tuesday’s close. At the same time, the yield on the German Bund with the same maturity fell to 2.23%. The spread between BTPs and Bunds remained stable at 147 basis points, in line with the level recorded yesterday evening.
