Failed the Doha summit: oil collapses, heavy markets – The Republic

MILAN – The oil producing countries, and the OPEC cartel and external to it, they have not found an agreement to freeze the production and try to stabilize prices: the markets will take note, fall is the quotations crude oil that stock prices.

the stop to the growth of the extractions was the minimum wage expected by the summit, which was held yesterday in Doha would have been a political signal, because from the technical point of view analysts were unanimous in saying that the freeze would not be enough to get a rise in prices, for which a cut would be served. Yet even the minimum has been achieved and the market could only take note of the Saudi-Iran tension and lack of coordination among the giants of the oil: the black gold has marked the largest decline in two months, the currencies of exporting countries They weakened and stock markets will suffer accordingly. On the other hand, as the chart shows, the correlation between stocks and oil has been strong in recent times and their optimism in view of Doha (and disappointed) had triggered a recovery in global markets.

Bloomberg In the graph, white futures on WTI oil and blue a representative basket of world stock markets

crude oil prices are therefore declining markets: WTI crude falls to $ 37.61 per barrel losing $ 2.7. Brent down even to $ 40.10. The European markets opened sharply down: a Milan , the Milan Stock yields 1.8% with the titles of the oil industry such as Eni and Saipem to pay the higher bill. Even the weak banking sector, fresh from a good performance during the past week. In line with other EU Milano Bags: London lost 1.1%, Frankfurt 1.2% and Paris l ‘ 1.5%.

on the currency front, the ‘ € is stable against the dollar in the beginning of the week: the single currency is trading at 1.1284 against the greenback, while the yen is treated at 121.85 fee. Slightly up for the spread between BTP and German Bund: the yield spread comes above 120 basis points, the return on Italian ten-year 1.35%.

‘agenda this week is focused on Thursday’s meeting of the European central Bank . Today, in the Old World, there were no significant events; attention in Italy instead focused on the opening of the hearings (by the Court of Auditors to the Bank of Italy) on the Document of Economics and Finance. In the US it is reckoning the Nahb index on the housing market. As for the Milan Stock Exchange, the company famous for the sports article, Technogym, announced that the price for the landing on the Stock Exchange, announced last month, will be between 3 and 3.75 Euros per share: the company is worth at least 600 million .

In the morning, the Tokyo Stock Exchange has already paid the bill for this situation losing 3.4% with the Nikkei index: in addition to the turbulence on crude oil, weigh strengthening of the yen (which scares rated export industries) and also the series of earthquakes in the country that has slowed down the activity: Toyota, Honda, Sony and other companies were forced to stop production lines. Closing down for the Shanghai Stock Exchange , with the Composite Index to 3033.66 points at -1.44%.

Wall Street reopens its doors after an uncertain Friday: the American Stock Exchange has returned from fractional decline in the Dow Jones (-0.16%), which moved as the Nasdaq. Throughout the week, though, the trend has been positive: the Dow gained 1.8% – thanks to quarterly above expectations – marking the same variation of the technology list. L ‘ Gold , finally, is rising on the markets after falling 0.7% last week. The precious metal gained 0.2% to $ 1,236.80 an ounce.