The fear of the second wave of the Coronavirus pandemic still keeps the stock exchanges in check. To pay the bill are above all the lists of the Old Continent where Frankfurt suffers above all (-3.7%) after the shock collapse of Sap, one of the largest companies in Germany and one of the most present stocks in large investment portfolios, which today loses more than 20%. The software company took a negative surprise this morning with a drastic downward revision of its growth forecasts for the coming months. Meanwhile, Angela Merkel described the health situation as “dramatic” in front of her party members.
Milan also hurts with the main FtseMib index down by 1.7% at the end of the day. Paris is also in the red with losses of 1.7%. Across the ocean, in New York, Dow Jones and Nasdaq are down by nearly three percentage points. The stalemate in negotiations in Congress on new aid to the United States economy is impacting.
As traders sell, the day was marked by a rush to safe havens. Gold rose, albeit only marginally, while the 10-year Treasury yield fell back to 0.81%, -3 basis points, after a week of rising.
The new wave of uncertainties was not affected by the spread which today closed in the area of 131 basis points, while the yield of the ten-year BTP fell to 0.71%, -4 basis points, after the confirmation of the rating on the Italian Republic by Standard & Poor’s on a Friday night. At the same time, the rating agency surprisingly raised the outlook on our country to “stable” from “negative”, a promotion that follows the success of the Treasury in placing the thirty-year bond. New historical lows reached the 2-year and 3-year BTP yields, both of which ended below zero.
In the meantime, all eyes are on Ant Group, the big Chinese fintech that is behind Alibaba’s payments and is preparing to land on the stock exchange in Hong Kong and Shanghai. The appointment could become a historical record. The company aims to sell up to 1.67 billion shares in the IPO phase for a value of more than $ 34 billion. It would be the biggest debut ever.