• Sales rain on European stock exchanges
  • The fear of the coronavirus is affecting the Asian stock exchanges: Tokyo swoops down by 3.4 percent

Share

February 28, 2020 The wave of sales on the markets continues. From Wall Street to Tokyo to Frankfurt and Milan, the stock exchanges are likely to close the worst week since the financial crisis, on the growing fears related to the spread of coronavirus in the world and on the threat of a significant impact on the global economy. It is difficult to quantify and predict the damage, especially because it is not over yet. The European stock exchanges opened this morning in heavy fall in panic for the coronavirus. European indices show losses of over 3%, with Frankfurt down more than 4 percentage points. Piazza Affari is no exception. The Ftse Mib marks a drop of about 3 percent, with all stocks in red. On the bond, there is a new upward tear in the spread between the ten-year BTP and the German Bund, with the differential above the threshold of 177 basis points.


Sitting to forget yesterday's one for Wall Street which saw the main indices fall over 4%. The Dow Jones capitulated 1,190.95 points, the slump in terms of the worst in its history, closing at 25,766.64 points (the worst session since February 2018), while the Nasdaq and the S & P500 reported losses in one session. stronger since August 2011. Panic has moved to the Asian price lists, all in red. Tokyo closed this morning with a 3.7% drop. Japan has decided to react to the spread of the virus by closing all schools, a decision involving 13 million students until the end of March-early April, after more than 200 people have been affected by the virus in the country.

With these latest losses some of the main price lists have technically entered the correction phase, that is to say they have lost at least 10% compared to the recent highs. This applies to the Ftse 100 which has lost 14.6% since the mid-January high, the Stoxx Europe 600 which has fallen -13.2% from the mid-February high, the Dax which has left 13.8% from the high also in mid-February, as well as for the Ftse Mib, which from the mid-February high to today's low made -13.5%. But how far can Piazza Affari go? The Ftse Mib index is now ahead of a dangerous test. After breaking the static support of 23,000 points, the index also attempts to break the price range between 22,300 and 22,000 points. The possible break of this support at the end, or the threshold of 22,000 points, will give a negative signal in terms of market sentiment even in the medium term.