The Moscow Stock Exchange collapses again after Russian President Vladimir Putin declared the country’s partial mobilization and promised to use all means to defend the country. The Moex index, which on Tuesday 20 September – before his speech – had lost 8.8%, on Wednesday 21 collapsed to a maximum of 9.6% at the start of negotiations and then recovered some ground and limit losses to 5.4%.
The European stock exchanges
The European stock exchanges are also starting down their negotiations with investors frightened by the words of the Russian president and waiting for the Fed to announce a new squeeze on the cost of money in the evening and give indications on the trajectory it intends to give to the rise in rates. In Frankfurt the Dax index began trading down 0.91% to 12,555 points, in Paris the Cac 40 lost 0.85% to 5,928 points while in London the Ftse 100 slightly moved, up by 0.09% to 7,199 points. Slightly positive, however, the Ftse mib in Piazza Affari which marks a + 0.28% at 21,834 points (at this link the trend of the stock exchanges in real time).
Piazza Affari and spreads
Leonardo stands out in Piazza Affari (+ 4%), in line with the attention of investors for the defense sector given the very high tension situation in Ukraine and Russia, and oil is holding (+ 2.3% Saipem, +1 , 4% Eni and Tenaris) due to the surge in crude oil which rose by more than 2% both in Brent November (92.4 dollars per barrel) and in WTI November (85.7 dollars per barrel). Utilities are doing well, starting with Italgas, Terna and Snam. Volatile Telecom Italia (+ 1%) in a lively telecommunications sector after the announcement of the investment vehicle of Xavier Niel (Atlas) to have acquired 2.5% of Vodafone (+ 1.5% in London). Sales on managed savings continue, while Buzzi, Stellantis and Pirelli are falling behind among the industrialists.
Start higher for the BTp-Bund spread this morning. The yield differential between the benchmark ten-year BTp (Isin IT0005494239) and the same German maturity indicated at 227 basis points from the 225 points of the previous session. The ten-year BTp yield fell to 4.12% from 4.19% on the eve of the previous year. Already the session of Tuesday 20 September was heavy for European bonds in general with Eurozone sovereign bonds in reverse due to the Fed’s wait (see the spread trend in real time at this link).
The price of oil
Oil prices are rising again after the words of Putin, who announced an imminent partial mobilization in Russia and threatened the West to use nuclear weapons. Brent futures are up 2.74% above $ 93 a barrel after falling $ 1.38 in the previous session. US West Texas Intermediate crude futures gained 2.80% at $ 86.29 a barrel.