The european stocks collapse in the form of trade wars and of increasing risk

The european stocks collapse in the form of trade wars and risk croissantsil 9 moisà from deDavid Becker

Despite the expectations of the index data on the confidence of economic sentiment, the euro zone markets are in decline. The Dax has dropped again below the critical threshold level of 18000 and the markets of the peripheral countries of the euro area recorded the worst performance. In Italy, the MIB is under pressure and has lost more than 2%. In particular, the banking stocks are under pressure, with UniCredit SpA, the largest Italian bank, which has lost more than 5% after the announcement that the ECB has called for the improvement of the plan for the management of non-performing loans. The general decline in european stock exchanges is part of the broader framework of the correction undergone by the markets everywhere in the world because of the concern about trade wars and the geopolitical risk increasing, the factors that weigh on investor confidence. At that time, the DAX moves down and the Euro Stoxx 50 loses about 1%. For once, despite the depreciation of the pound and the general increase in risk aversion, the performance of the FTSE 100 is not worse than the other indices.

Greece has not obtained a review of his rescue plan. Lenders have, in fact, rejected the proposal of the government of Athens, who admitted that 2/3 of the rescue actions have not yet been placed. For the EU, there is no reason to “assessments alarmist” on the Greek debt.

Crude oil has gained 0.4 per cent, rising to 53,40 $ and be closer to the intraday high of 53.46 $. Today is the sixth session in a row in which the price fluctuated around 53.0 $, with a lowest daily 52,84 $. This listing has been affected, while the markets assimilated data that show a further increase in the number of oil wells active in the United States. Apparently, in January, members of the OPEC have reduced production of 900,000 barrels per day, equal to half of the reduction laid down in Vienna. The wishes of the OPEC price more than 60 $ is still far from getting there.

In December the trust of the Euro area has exceeded expectations

The Esi index of economic confidence euro-zone exceeded expectations, from 107.8 in December 108.2. After the various data on the Germany, the forecast of the Esi have been marked by caution. However, the final results are clearly positive, consumer confidence, which is corrected upward from a preliminary reading already satisfactory. In addition, confidence in the industry and in the services that surprise positively.

The inflation data Länder, the German was different. The first publication, on Saxony, where the rate rose to 2.3% on an annual basis, has frightened the markets, dragging the Bund to the downside. However, data on other States were more balanced, showing that, in January, at least in Bavaria, the annual rate remained unchanged, while in North Rhine – Westphalia has increased by only 0.2%.


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