[ad_1]
The macro data show the magnitude of the economic crisis. Tech stock sales, eyes on Wall Street reopening as Trump reignites tensions with China
by Chiara Di Cristofaro and Flavia Carletti
The macro data show the magnitude of the economic crisis. Tech stock sales, eyes on Wall Street reopening as Trump reignites tensions with China
2 ‘reading
European stock markets are moving in negative territory, with data that certify the fragility of the European economy due to the pandemic. Also weighed the data of infections in Germany, which rose to the levels of April and the peak reached in France. This will be followed by the reopening of the US market, after the Labor Day holiday, to focus the attention of investors, as relations between the United States and China remain tense. In fact, President Trump said about wanting to end economic relations with China He said he wanted to give tax credit to companies that create jobs in the United States and impose tariffs on companies that outsource work to China and other countries.
European GDP marks a record drop in the second quarter
Expectations are growing that the ECB meeting, a key event of the week, will take stock of the recovery with the data that certify the collapse of the economy due to the pandemic. German data shows a much slower-than-expected rise in exports in July, while second-quarter euro zone GDP figures show the biggest drop ever. In the second quarter of 2020, GDP decreased by 11.8% in the euro area compared to the previous quarter. In the meantime, Fitch lowered estimates of Italian GDP in 2020 to -10% from -9.5% previously, while raising the projection for the expected rebound in 2021 to 5.4% from previous estimates of 4.4%.
Down with technology and raw materials, Pirelli competes in Milan
Sales in Europe mainly affected technology and raw materials stocks. Among the Piazza Affari shares, St marks the worst losses, in line with the sector. A starting point for Pirelli celebrating the positive judgment of Citi analysts. Diasorin is retiring after initial earnings and after announcing the establishment of a strategic partnership with MeMed with the aim of accelerating the dissemination of a new protein signature test based on the patient’s immune response. Opposite sign for Interpump and Prysmian.
Increased demand for the new 20-year BTp
The launch of the new 20-year BTp benchmark placed today by the Treasury closes with a successful demand. According to financial sources, the books have been closed and the final cut of the issue has been set at 10 billion. Investor requests were very strong, exceeding 84,000 million euros. The 20-year BTp expiring on 03/01/2041 offers a margin of 7 basis points compared to the benchmark BTp that expires on 01/03/2040. The regulation of the issue falls on September 15. The placement is followed by a syndicate of banks consisting of Credit Agricole, Deutsche Bank, Goldman Sachs, Intesa Sanpaolo and Jp Morgan.
Pound even lower, oil at two-month lows
Meanwhile, the pound remains weak and the market is watching with concern the difficult talks underway for Brexit. The British currency has moved to its lowest level since August against the dollar, in the area of 1.30, while in the currency the euro remains firmly above 1.185 against the dollar. Oil sales continue, hitting a two-month low following Saudi Aramco’s price cut.
