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This article was published on July 27, 2015 at 9:07.
The last change is the July 27, 2015 at 11:09.
Sitting negative for Asian markets led by Shanghai who checked the session with a fall of more than 8 percent. Also weighing on the price list the uncertainties and fears about the health of the Chinese economy. At the end of trade the Shanghai Composite Index closed down dell’8,48% leaving behind 345.35 points to 3,725.56 points, the worst performance since 2007. Also hurt the square of Shenzhen with the composite index in down 7% to 2,160.09 points. The Stock Exchange of Hong Kong has lost 3%.
The sudden and unexpected collapse of Shanghai comes after three weeks of calm during which the composite index had recovered 16% since the trough last July 8. The main square of China had recorded, in fact, a short period of high volatility ’caused by fears of the presence of a bubble in the Chinese market also for the widespread practice of purchase in debt securities.
The rapid implementation of some intervention by the Chinese authorities had held back the fears of investors, particularly retail investors, the presence of a speculative bubble in the market. The recovery of the past three weeks had been favored by the presence in purchasing entities’ under state supervision. This is the case of the China Securities Fund Financial Corp. which some operators would intervene massively to buy on the square in Shanghai.
The Chinese price lists today plummeted on fears of an economic slowdown in the Asian giant: the Department of Statistics of China showed a drop in industrial profits by 0.3% in June. The data is added to the index of China manufacturing PMI, released last Friday and fell to its lowest for 15 months, confirming fears of a slowdown in Asian locomotive. The concerns on the Chinese economy also infect other exchanges: Tokyo closed down 0.95%.
The news also impacts on the performance of European stocks that yield more than one percentage point. The FTSE MIB Milan stock (which last week ended with a fall of 1.08%) gives up more than one percent. The Milanese listing on strong sales Fca after record fine of 105 million dollars by the US inflicted due to inadequate retreats cars. Other titles strong sales of Sorin after the stop the merger with Cyberonics.
However, European stock markets recorded good macro data coming from the Eurozone. In July, the Ifo index, which measures confidence on the economic performance of German companies, rose to 108 points, beating expectations.
The euro is back above $ 1.10 share. This week is expected the speech of the Federal Reserve Yanet Yellen that could give important clues on monetary policy in the US. Markets expect at least one rate hike this year but there is uncertainty about the timing: not all operators are in fact convinced that this can happen as early as September.
It continues the decline in oil It opens the week with a new fall in the crude oil WTI Texas 0.7% to $ 47.79 per barrel. From the peak in June, the passive is so 20%. Also backs the Brent to $ 54.5 (-12 cents).
Among the macroeconomic data of the day, after falling more than expected seen in June, is expected today on the index of German business confidence relative to July. Estimates are unuleriore drop to 107.2 from 107.4 last month.
On the bond spread between BTPs and German Bunds again exceeds the threshold of 120 points. The yield is 1.89%. The spread between Spanish Bonos and Bund stood at 124 points with a rate 1.92% (Eurozone bond yields).
Since markets are closed today in the announcement of the quantities and types that the Treasury will offer at auction in the medium to long on Thursday, 30 July. On Friday it was announced that the Ministry of Economy will offer in the next auction of July 29, 6.5 billion euro in Bot 6 months (duration 182 days), compared with 7.7 billion coming due. Tomorrow the first day delleaste month-end will take place only placement of indexed, offering up to 750 million Btpei September 2026, the date of the auction cancellation Ctz.
On the markets while holding court yet the Greek question. This morning, the ECB has rejected the proposal to reopen the Athens Stock Exchange without restrictions. Originally scheduled for Friday, the start of negotiations for a third bailout was instead sent back a few days to Tuesday, “for technical reasons, not political nor diplomatic,” according to an official of the Ministry of Finance. The talks should unlock the third bailout program, worth 86 billion euro. The Athens Stock Exchange will remain closed while today, but could reopen tomorrow after being closed for a month. Greek banks have instead re-opened on Monday.
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