MILAN – 11 am The European markets accelerate significantly and the spread between German BTPs and Bunds plummets after the ECB announced that an extraordinary (“ad hoc”) meeting will be held this morning which has the rush of debt yields on the table of peripheral countries (Italy in the lead) after the latest announcements on the end of extraordinary purchases of securities and on rate hikes starting from the end of July. Yesterday the member of the board of the ECB, Isabel Schnabelhe said he was monitoring the situation “closely”, and was ready to use both existing and new tools if he encountered a “disorderly” market.
The spread between BTPs and Bunds thus falls to under 220 basis points, when only yesterday it touched 250, and the Italian ten-year yield breaks down the 4% threshold. As often happens in these cases, banks and managed savings shares are the first to move: in Piazza Affari they stand out on the main list with sustained increases and push the Ftse Mib of Milan at + 3%. Fineco earns 7%, Intesa and Banco Bpm over 5%. The other European price lists also did well: London salt of 1.12%, Frankfurt 1.44% e Paris 1.35%.
The other focus of the markets remains the Fed: from US central bank it is expected (in the Italian evening) that the cost of money will rise by at least half a percentage point, although in recent times – especially after the reading of the higher-than-expected inflation in May, which emerged last week – bets have increased on a 0.75 point move: it would be the strongest since 1994.
Public debt at 2758 billion
Among the macroeconomic data of the day, the update on the trend of public debt Italian. According to the data communicated by the Bank of Italy, in April it reached 2758 billion. The cash surplus of public administrations (5.3 billion) – underlined Via Nazionale – was more than offset by the increase in the Treasury’s liquidity (5.5 billion, to 101.1) and by the effect of discards and premiums on issue and redemption, the revaluation of inflation-linked securities and the change in exchange rates (€ 3.3 billion).
Weak stock exchanges in Asia, positive China data
Closing down sharply for the stock market Tokyo where the Nikkei index closes the session with -1.14% at 26,326.16 points. This is the fourth consecutive session of losses. Improving news for the economy came from China: in May, retail sales fell again (-6.7%) but less than expected, while industrial production (+ 0.7%) beat expectations. In fact, the Chinese stock exchanges closed the session positively, but far from the intraday highs: Shanghai rises by 0.50%, to 3,305.41 points, while Shenzhen marks an increase of 0.47%, at 2,098.99.
The currency front is in fibrillation, with the greenback which has been at a high for 20 years. “Against a backdrop of skyrocketing inflation, rising rates and growing recession concerns, the S&P 500 had its worst start to the year since 1962,” analysts at Goldman Sachs note, who also say “a possible spike in inflation it will probably not be enough to see the bottom of this bearish phase, which can only end when the Fed returns to a more accommodative policy “. After the announcement of the ECB meeting, theEUR increases the gains on the dollar and in the morning the European currency changes hands to 1.0473 on the greenback, with a variation of + 0.59%. While the exchange rate against the pound is at 0.8708. The British currency is trading at 1.2033 against the dollar, after hitting a 15-month low of 1.1934.
Bitcoin’s decline affects more and more wallets
Bloomberg points out that the Bitcoin bear market has entered its “deepest and darkest” phase, cried Glassnode. Even those who have had cryptocurrency in their portfolios for the longest time, who until now could therefore enjoy relative peace of mind because they were purchased at low values, are now subjected to extreme pressures. There is in fact an indicator known as the “realized price” or the average purchase price of all the Bitcoins in circulation. It’s like averaging the carrying price of all BTC holders. Well, the leading cryptocurrency is currently a thousand dollars below the average value of 23,430, according to the company. The collapse of these days is starting to affect many portfolios.
Yesterday the sector was in turmoil as Coinbase announced it will cut 18% of its workforce, which in all is made up of about 5,000 full-time employees; around 1,100 people will therefore lose their jobs. Furthermore, the stock of Microstrategy, a software company of entrepreneur Michael Saylor, reacted positively to the pressures deriving from the sharp decline in Bitcoin and closed up 3.1%, despite the doubts of many experts and after the drops in the premarket. In fact, Microstrategy has over 129,000 bitcoins and, with Bitcoin briefly falling below $ 21,000 (and then returning to around $ 22,500), many experts have begun to talk about a possible forced liquidation, which would undermine the value of Bitcoin even further. A hypothesis disproved by Saylor, who assured that the company has enough virtual currency to cover the collateral requirements for a $ 205 million loan and that it would need to add collateral only if the price of bitcoin were to drop below $ 3,562.
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