New record for the price of gas, which reflects Gazprom’s decision to close the Nord Stream gas pipeline for three days. Ttf futures, benchmarks of the price of methane in Europe, ended trading in Amsterdam with a jump of 13.17% to 276.75 euros. During the session, futures reached a maximum of € 295 (+ 20.6%). Heavy session for the European stock exchanges that are discounting fears about the effect that the energy crisis will have on the European economy, with the price of gas and electricity that have set new records in the wake of Gazprom’s decision to close for three days the Nord Stream gas pipeline. Paying the highest price due to Germany’s strong exposure to Russian gas imports is the Frankfurt Stock Exchange, whose Dax index lost 2.32% to 13,230 points. In Paris the Cac 40 lost 1.8% to 6,378 points while in London the Ftse 100 managed to contain the falls to 0.22%, to 7,533 points.
BERLIN: ‘DIFFICULT WINTER, PUTIN WILL BE ABLE TO CUT GAS AGAIN’
“We have a very critical winter ahead of us. We must be ready for Putin to reduce gas even further,” German Minister of Economy and Climate, Robert Habeck, said today on public TV Zdf. The minister also spoke of the new aid coming for the Germans, saying that it is important to maintain the “democratic consensus” and a “basic balance” and, therefore, “those who earn less must be supported more than those who earn more” . Habeck is currently on a visit to Canada with Chancellor Olaf Scholz.
HEAVY MILAN WITH BANKS
Session of strong sales for Piazza Affari, which, like the other European stock exchanges, suffered the fears of a recession in the Old Continent triggered by the rush of energy prices. The Ftse Mib lost 1.64%, weighed down by the sharp drops of Saipem (-6%), Moncler (-4.6%) and Tim (-4.2%), which fell close to its historical lows. purchase of shares for one million euros by its CEO, Pietro Labriola. All banks are bad, with MPS in the lead (-6%) called to face a difficult recapitalization. Declines of over 3% for Banco Bpm, Bper, Unicredit and Intesa. The automotive sector is also bad with Stellantis (-4.1%), Iveco (-3.7%) and Pirelli (-3.5%). In contrast to some pharmaceuticals (Recordati + 1.6% and Diasorin + 0.9%), the utilities Snam (+ 1.3%), Italgas (+ 1%) and Terna (+ 1.1%) and, finally, the ‘Eni (+ 1.6%), awarded for the discovery of a large gas field off the coast of Cyprus.
SPREAD BTP-BUND AT 230 POINTS, FLOUNCE PERFORMANCE AT 3.58%
The BTP-Bund spread touches 230 basis points, up by 4 points on Friday’s close, while the Italian ten-year yield climbs to 3.58%, up by ten basis points. The BTPs recorded the most significant drops in a generalized sales context for Eurozone government bonds, penalized by the inflationary risks linked to expensive energy, thanks to the unbridled rush of gas, and by fears of monetary tightening. The spread is at its highest since the end of July while the yield on BTPs is at the highest level since last June 22nd.
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