Thursday, February 11, 2016

Banks ditched the stock exchanges: Milan sinks to -5.6%. Gold at the highest level in a year – Il Sole 24 Ore

History of the article

Close

This article was published on February 11, 2016 at 17:40 hours.
the last change is the 11 February 2016 at 18:53.

After the strong rebound yesterday new black day in the markets. In Europe, the FTSE black jersey of Milan Stock MIB that gives 5.63% and back below 16 thousand points with generalized sales in all segments as well as bursts of bank suspensions. It took a few minutes to cancel the attempt to put recovery sign 24 hours ago and to bring the deficit accumulated by the Milan stock exchange by more than 25% early.

Strong declines for the other European stock exchanges and the same Wall Street traveling in heavy red: the Dow Jones lost 2.34% to 15,541.98 points, the Nasdaq yields to 1.55% 4216.79 points while the S & amp; P 500 leaves on the ground 1.85% to 1817.51 ​​points. Meanwhile, the Federal Reserve “takes into account the evolution of the international situation” in taking its decisions on interest rates and, in this sense, keeps all options open, including the use of negative rates. “I would not exclude the possibility of negative rates,” said Chairman of the US Federal Reserve Janet Yellen during the semi-annual testimony before the Senate Finance Committee.

Meanwhile, it was said, the sell-markets, including automatic and due because of technical factors and the effect snowball. This is demonstrated by the fact that Mediobanca, despite having closed the accounts of the first half of 2015-16 (last December) with a net profit of 321 million euro, up 23%, lost at the Milan Stock about 9% and then close with a -5.27 percent.

as it turned the low volume of the session yesterday confined the + 5% filed on the eve of the Milan stock exchange as a simple technical rebound, while the trend remains oriented downward and to exercise extreme caution. While WTI oil travels at $ 26 per barrel (sixth consecutive session downward) are in fact even today purchased haven assets. The gold goes to $ 1,242 an ounce in fact, return to the levels of last February. YTD salt yellow metal by 14% although there are worse on inflation prospects.

Strong purchases also on the safe haven, the 10-year German Bund, whose yield has slipped to 0.16%, and is approaching levels last April (0.07%). But there is a big difference compared to last spring, then the German securities were purchased as a result of the launch of quantitative easing from the ECB. Today, however, because they are bought in the markets is on the indicator of aversion to risk. Unlike a year ago, in fact, the market sells the bonds of the periphery (including BTP) but with a very limited effect given that the offer covered by the counter-purchases ECB discourages speculative attempts in this regard. This also explains why the performance of BTP is only slightly higher in the 1.7% area. It explains why the BTP-Bund spread has led to quota 160, so not much for sales on BTp but especially for the strong buying on the Bund retreat (yield on eurozone bonds).

On the side flying currency the euro exceeds $ 1.13. A trigger sales on the dollar were the statements made yesterday by the governor of the Federal Reserve, Janet Yellen, who has even opened hypothesis ‘if necessary’ of a rate cut in the US. However improbable at the time would be dramatically reversed with respect to the gradual increases plan announced in December.

Since the currency market comes another signal, not encouraging. The dollar / yen fell below 116 points, threshold that held by November 2014. According to the intermarket approach, based on correlations in financial markets, it is a signal enhancement of risk aversion.

Moreover, the risk aversion sentiment is global. The Hong Kong index Hang Seng, sold 3.85%. For the shares on the Hong Kong Square is the worst fall in the session of the Lunar New Year since 1994. While still closed the Tokyo and Shanghai stock exchanges.

twitter.com/vitolops



Permalink

LikeTweet

No comments:

Post a Comment