The Ftse Mib also at -11.2%: 2019 earnings are zeroed. Nightmare Europe. Dragged down by oil, the Gulf price lists also sink (Saudi Arabia -9.2%). Shanghai closed at – 3.01%. Spread to 216
Milan, 9 March 2020 – It is a very black Monday, a nightmare for the world stock exchanges (including Europe: very bad in Francofote, London and Madrid ) due to the planetary coronavirus epidemic and the collapse in the price of oil . The Asian stock markets collapsed and in Italy the wave of sales that poured into Piazza Affari at the opening of the trading week, after the new government provisions to stop the infections from Coronavirus, did not open the negotiations on the Milan Stock Exchange. On the Ftse Mib, in fact, only Recordati opened at -8% and was immediately suspended, while the other 39 stocks are priceless. The Ftse Mib index marks an initial drop of 0.09% to 20,780 points with almost all the stocks in the main list that fail to make price for too much fall. Saipem and Eni, like others in the volatility auction, recorded declines of 29 and 21% respectively.
Then Ftse Mib index on -2.05% after a few minutes from the start of trading. However, only a dozen stocks have so far opened, thanks to the strong price drops that cause them to be suspended. Among these Generali -7.9%, Stm -9.8%, A2A -10.8%, Terna -6.9%. On the other hand, Italgas rose with a + 1.4%. With the passing of the minutes, a very difficult situation remains: the Ftse Mib continues to decline (even -11.2%) . Then it slightly improves to -9.3%. Today’s slump brings the Ftse Mib back to the levels of January 4, 2019 and cuts revenues in 2019. It is the absolute worst drop after Brexit.
Bad news comes from the Asian markets. In addition to fears over the spread of Covid-19, the Chinese stock exchanges above all blame a thud for the collapse of oil after the failure to agree to OPEC and the price war started by Saudi Arabia which, defying Russia, has decided to increase production and to cut prices: the Composite index of Shanghai drops 3.01%, to 2,943.29 points, while that of Shenzhen loses 3.79%, at 1,842.66.
But it did not go better on the other squares . Tokyo closed in deep red with the Nikkei index of 225 leading stocks which marked a decline of 5.07% to 19,698.76 points. In Hong Kong, the Hang Seng index lost more than 4%. The Australian stock market was the worst day since the global financial crisis: in Sydney the Asx index left 7.3% on the field. Seoul collapses to -4.2%. The collapse in oil prices sinks the stock exchanges of the Gulf countries . The lists of Saudi Arabia (-9.2%), Dubai Abu Dhabi, Qaìtar and Kuwait,already in trouble yesterday, they experience losses of between 7 and 9%. The Saudi oil giant Aramco, which had fallen below the IPO price yesterday, leaves 10% on the ground.
Europe, nightmare opening
In the first trades, the London reference index Ftse 100 dropped 8.2% to 5,935.21 points, compared to the closing level on Friday. Frankfurt’s Dax 30 dropped 8.1% to 10,607.80 points and Paris Cac 40 dropped 4.2% to 4,921.91. Oslo is plunging to -12%. Madrid – 7%.
The price of oil is falling
Oil prices plunged on fears of an oil war after OPEC and Russia failed to agree on a new cut in production and price support. The WTI fell 28.54% to $ 29.50 a barrel after hitting lows since 1991 , while Brent fell 26.51% to $ 33.27 a barrel. Goldman Sachs reviews the estimates on the price of black gold: “We believe that Brent can be traded at 30 dollars a barrel with significant drops of up to 20 dollars”. First effects on the fuel network: on Saturday Eni had posted a drop of 2 cents on the recommended prices of petrol and diesel. Today Q8 has reduced by 1 cent. According to the International Agency for(IEA ) global oil demand will decline for the first time since 2009: this is due to the coronavirus emergency.
The spread at the start of the day also touched 216 points which then slightly repeats. The maximum was 230, then 220.
Matteo Renzi: “We asked to anticipate measures on today’s opening of the Milan stock exchange. It is unpleasant to say ‘we said it’, but even the unpleasant should sometimes be listened to …”. The vice president of Forza Italia , Antonio Tajani: “Immediately ban short selling on all European Union stock exchanges to avoid new damage to savers, investors and businesses! Consob should not waste time and do not lose the other control agencies of exchanges in Europe! “.