Piazza Affari collapses, continuing to wear the black shirt among the price lists of the Old Continent, all falling. Milan loses 4.2% while London loses 1.7%, Paris 2% and Frankfurt 2.2%. On the Milanese list, there was a flurry of downward suspensions with Bper (-8.7%), Mps (-8.9%), Mediobanca (-5.7%), Mediolanum (-5.5%), Nexi (-4, 7%), Poste (-4.8%), Tim (-5.1%) and Banca Generali (-4.6%) all in volatility auction while Fineco, Intesa, Unicredit, Cnh and Tenaris recorded reductions exceeding the 5%.
The Btp is also struggling, with the spread with the German Bund widening by almost six basis points, to 186, despite a drop in yield to 4.2%, in the wake of bets for a softer hand from the ECB on rates. Government bond yields are collapsing around the world, with investors betting on a turn in the restrictive monetary policy of central banks in order to defuse the risks of contagion linked to the failure of Silicon Valley Bank. The most important tears are recorded on the two-year government bonds of the Eurozone, with the yield of the German Bund falling by 44 basis points and that of the French Oat by 46 while for the BTP the drop is ‘limited’ to 29 points . Traders see the ECB’s terminal rate ‘collapse’ to 3.56%. The effects can also be seen on the euro which reduces the rise against the dollar to 0.25%, with which it exchanges at 1.067
The entry into the field of the American government, which has promised that all the deposits of Silicon Valley Bank will be repaid, however, seems to stop the hemorrhage of confidence on Wall Street where futures click. And the expectation of a less aggressive Fed also drives US bonds. Goldman Sachs economists no longer expect any interest rate hikes from the Fed in March following the stress on the banking system, which emerged with the SVB. Goldman expects considerable uncertainty surrounding the Fed’s next moves after March. This was reported by the Bloomberg agency.
The British branch of Silicon Valley Bank UK (for which the Bank of England has filed for insolvency after the crack) has been sold to HSBC: the British government has announced it. HSBC Holdings plc is one of the largest banking groups in the world. It is the first European credit institution by capitalization, its headquarters are located in the HSBC Tower in London’s Docklands.
Source: Ansa
I am a journalist who writes about economics and business. I have worked in the news industry for over 5 years, most recently as an author at Global Happenings. My work has focused on covering the economy news, and I have written extensively on topics such as unemployment rates, housing prices, and the financial crisis. I am also an avid reader and have been known to write about books that interest me.
