And ‘Brexit: sterling in freefall, sheer bags. Piazza Affari never so bad – The Republic

MILAN – dramatic night and Black Friday for the international markets with the Brexit victory that will lead Britain out of the EU. In just the start in Milan Recordati he manages to make money and lose more than 9%, while all the others remain locked down for the excess sales. With the passage of minutes start the trading day and red at the Milan widens up to 11%: This is the biggest loss since it can reconstruct back the trend, since 1994. After the Lehman collapse marked the Ftse Mib a collapse dell’8,24% October 6, 2008, and September 11, 2001 had lost 7.57%.

to pay the greater brunt are banks that only barely manage to make money: when BPM opens the is 35% theoretical red, then retraces, but the losses are heavy and two digits as Unicredit and Intesa Sanpaolo. To be on your knees is the entire European banking sector. Frankfurt lost 6.9% worse than London (-3.9%), but better than Paris (-8.3%). In Tokyo the morning has lost 7.92% by storing the worst nuclear accident of sitting Fukishima. To avoid damage maggiorni, Japan has decided the application of ‘circuit breaker’, a device that inhibits the input features and changes to orders, limiting the downside too high. A mechanism that could be also used by Italian Stock Exchange that it would be ready to narrow down his fork of the securities fluctuation, to contain the flow of sales.

A terrorize analysts is also the troubled path that will sanction the divorce between London and Brussels because they need at least two years of negotiations that will power only the uncertainties. “Brexit may be the new Lehman” says Vincenzo Longo, an analyst at IG Markets. The experts hope a divorce that would minimize the economic damage to all those who will suffer the impact of Brexit. “Britain will suffer but I’m sure you still focus more now on the competitiveness of its economy towards the EU and the world at large” says Tom Enders, CEO of the European aviation group Airbus Group.

suffering is mainly the currencies with the pound after a triumphant initial launch in the wake of the polls (sprint to the highest since 2015, touching the $ 1.50), it collapsed in the night as they arrived the advantage of data “leave” from the EU, marking a decline of 5% against the dollar and almost reaching 1.33: a collapse that exceeded that of 1985. the fluctuations of the pound will go in the archives as the strongest ever. The loss on the day of the referendum had already surpassed that of the “Black Wednesday” in 1992, when the currency crisis pushed Britain out of the European Monetary System. Also the weak euro in negative following the release by the EU in London. The single currency falls to below 1.10 (1.0984) and 111.56 against the yen, another safe haven currency in these moments.

Storm also on government bonds: the spread, the difference in yield between BTPs and German Bunds widened to 185 basis points by the latch portion 130 points before retracing to 150 share with the Italian ten-making just under 1.5%, while the rate of the bund has fallen to a minimum of -0.17% record before recovering to -0.15%. A support prices is primarily the intervention of the ECB. Immediate l ‘effect on commodities: while oil is falling and yields over 6% to $ 47 per barrel WTI and Brent lost little less (5.95%) to $ 47.88, runs gold, considered the safe haven par excellence. The prices of the yellow metal, strong as days, rising 7.8% to the highest since 2008.

Now the attention is directed towards the central banks. Haruhiko Kuroda, number one of the Boj, the Japanese bank, has assured that it will work closely with other central governors to stabilize markets. In particular, the bankers are thinking of using – as happened during the 2008 crisis – a “currency swap” agreement that would allow the central banks to stock up dollars at the Federal Reserve while retaining unchanged the rate of exchange at the time the transaction is closed: in this way the oscilazzione currency would be limited. the Bank of England intervened explaining that will do “everything necessary to ensure market stability.”