Markets, pound at 37-year low after UK tax cut plan. Fears of recession sink the stock markets, Milan at – 3%

Strong rise in the yields of government bonds in the euro area. German 10-year bunds rose above 2% for the first time since 2013, an increase of 6 basis points from yesterday. The Italian BTPs are also uphill, a ten-year pays the 4.32% with an increase of 17 points. The spread, i.e. the yield differential between the two securities, thus widens to 230 points. The French ten years yield 2.59% (+ 7 points), the Spaniards 3.16% (+ 6), Greek stocks 4.55% (+ 9). The rise in yields means that the value of the bonds it’s decreasing. Basically, bond sales exceed purchases and equilibrium is re-established at lower price values. It sells because official interest rates are rising as the outlook for economic growth they worsen. Recession fears sink oil which loses 5.4% a 85.6 dollars a barrel.

Current yields remain negative in real terms being well below average euro area inflation. The euro is still losing value, losing 0.75% against the dollar, remaining below par. Stock markets also fell with drops of over 2%. In New York the S & P500 falls 2.2% like the Nasdaq. Milan among the worst, lost 3.3%. The strongest drops are for Tenaris (- 8.1%), Leonardo (- 6%) and Iveco (- 3.9%). Amplifon is the only positive stock. Frankfurt closed – 2%, Paris – 2.3%. London lost 2%. The new British government led by Liz Truss presented a tax cut plan from 45 billion poundswithout however clarifying the doubts about possible coverages. The pound lost 2.4% on the dollar reaching the lows of 37 years old.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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