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This article was published on January 7, 2015 at 06:36.
Volatility. It is the word through which can be summed up yesterday’s session. In a festive day, with limited volumes, equity markets were up literally on a roller coaster. A try? Comes from the same pool service. In downward mid-morning, the FTSE MIB is back above parity. From there it was a series of ups and downs. One hour after the close the index came even to earn over 1.7%. But then in a little over 50 minutes, thanks to the reverse of Wall Street, is rolled down, closing down 0.25%. A red, with black mesh Madrid (-1.22%), which featured major exchanges of the Old Continent.
Beyond the volatility, and the performance of lists, such as the grounds of share movements?
In the first place must surely remember the oil. Black gold continued its downward stroke. In Europe, the US oil quality WTI fell, intraday, below the threshold of $ 48 per barrel ($ 47.89). That of the North Sea, also the lowest level, is rolled in the evening to 51 dollars a barrel.
In the face of such a dynamic investors got nervous and, aided by low liquidity, eventually prevailed for “sell.”
However, the bearish was also helped by a report from Moody’s. The rating agency noted that the oil industry is entering 2015 in a “difficult” because of the collapse of crude oil. If in 2015 the oil will remain around $ 55 per barrel, the decline in revenues “will hit the profit of producer groups, reducing the cash flows to be reinvested.”
But it was not only the gold black. Another element that, although more in the background, it continues the theme of Greece. That is, more generally, the resilience of the euro. In the last session the single currency showed further weakness. Of course, in the evening, the exchange rate with the dollar is back around 1.1931 share. It, however, during the trading the currency of the Eurozone went below 1.19.
A closer look, the value itself is not low. And it’s not bad for the export of many economies (including Italian). That said, the reasons that led him downwards are not all so “healthy”. A role is played by the divergence between the monetary policies: the Fed is expected to hold rates, while the ECB has to launch the Qe on government bonds. It, however, precisely the causes that lead to the Quantitative easing are those that express the weakness of the Eurozone. So, yesterday did not help the final data on SMEs in December. The latter was at an altitude of 51.4 against 51.1 in November. A value, in short, still growing but below the flash estimate (51.7). Which did not lead to optimism.
A closer look, the macroeconomic data have not been so positive even in the US. Only industrial orders were better than expected. Disappointment, however, for the PMI services. In a similar context (always remembering the market movers oil) there was a sell off dall’azionario of which, however, have taken advantage of the Treasury. Security Research has revealed the performance of T Bond to 10 years to below 2%. In Italy, for its part, the spread BTP Bund closed up to 141 basis points. A dynamic, although the rate of good Italian has touched the 1.77% (1.85% closing), due to the decline of the Bund (0.45). A yield of fact zero. It now expects inflation EU.
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Performance of Bags and government bonds in Europe
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