Coronavirus, the economy: European markets in red with the noise of oil. BTP rate above 2.1%, the differential closes at 268 points

propagation Between the ten-year Italian and German government bonds soar again, a 268 points base in view of the European council on Thursday A decisive increase also for the thirty-year BTP, whose yield increased by 21 points to 2.92%. Meanwhile, the stock markets are in shock at the unprecedented phenomenon of oil “Below zero”, although the negative prices only referred to futures contracts with delivery in May and Tuesday, which were again positive. April 21 was another high-voltage session, with all European price lists in the red sunk by the collapse of barrel prices. Piazza Affari left 3.59% on the ground. They collapsed Eni, Saipem and Tenaris but also banking and luxury. No positive title.

On the bond front, the shakes depend on the fact that investors are looking to the next EU leaders summit who will also see the Spanish proposal of a fund with perpetual debt of at least 1,000 billion euros, potentially well seen by the Germany since it would clear the field of use eurobonds. Yesterday the chancellor Angela Merkel He anticipated: “I imagine that the budget will not be like when we physically discussed it in Brussels. I imagine that in the first years after the pandemic, the budget will have to have other possibilities, but this must also remain. under current treaties“

The nervousness before the leaders summit was felt in the yields of the countries of the “South”, starting from Italy: the rate in BTP reached 2.15% and the differential (propagation) compared to Bund The Germans closed at 268 basis points, from 239 on Monday. And also the rates in the 3 and 7 year BTP increased by 15 basis points compared to the last closing, increasing respectively to 1,313% and 1,857%. in Germany On the other hand, the recovery seems to be on the rise: the surprise in investor confidence was positive again: in April, the Zew index flew to 28.2 points from -49.5 points in March, against expectations that They imagined a slight increase to -42 points.

Oil collapse caused by complete storage – What happened yesterday in the futures market can be considered the opposite of “short grip“What happens when operators fear that they will no longer be able to find the physical asset underlying the product to which the futures refer and, consequently, maintain their own positions, triggering an upward rise in prices. On the contrary, yesterday they feared they could not abandon the WTI contract due to the Difficulty finding a place to store physical oil. What happens if all the tanks are full? In the case of the contract WTI, the reference to make isCushing delivery hubin the American state of Oklahoma. This is the destination for the storage of the oil underlying the futures traded in New York.

But, according to the data of Rystad Energy, the available space can only contain 21 million barrels of oil less than two days of US production of crude. Cushing’s capacity, equivalent to 80 million barrels of oil, is at the limit, so much so that several experts believe that the deposits, which are already full of oil, will have exhausted the storage capacity as early as May (in February, the amount deposited did not reach 50% of the capacity). All the fault of coronavirus and the confinement That went on. L ‘International Energy Agency He already warned in his monthly report that oil demand for the month of April could be 29 million barrels lower than that of the same period in 2019, the lowest since 1995.