Shocking collapse of European markets: US debt downgrade weighs heavily. Milan in freefall, Frankfurt and Paris are not joking!
Shocking collapse of European markets: Impact of US debt downgrade
The downgrade of US debt by the Fitch rating agency has heavily shaken the European markets. The Milan stock exchange marks the third day of decline, recording a drop of 0.94%, while Frankfurt and Paris are not joking with falls of just under one percent. This situation of economic instability is putting investors to the test, while the Milan index continues to fluctuate.
However, tranquility seems to reign in New York, especially for the Nasdaq index of technology stocks, which shows a slight recovery after yesterday’s sharp drop. Operators’ eyes are now focused on the financial performances of giants like Apple and Amazon, whose accounts will be published after markets close, in the hope of getting positive signals for the recovery of the markets.
Interest rate hikes and uncertainty about sales: The challenges of financial markets
Further cooling today’s markets was the increase in rates by the Bank of England, which recorded an increase of 25 basis points. Despite some board members having hoped for a double rise, from 50 basis points, this has led to an increase in government bond yields, with ten-year American securities touching 4.18%, at highs since last October, and the Italian Btp with a yield of 4.24%.
This scenario has also negatively affected companies that have reported positive quarterly accounts, such as Banco Bpm and Bper Banca, which have seen their values fall. In addition, the discussion about the sale of Tim’s network to Kkr has generated further uncertainties and tensions in the markets. With speculation about the involvement of Cassa Depositii and Prestiti and the F2i Fund, investors are anxiously following the situation, waiting for developments that could influence the economy and investment opportunities.
