The Fed promises to purchase unlimited but Wall Street is not enough

Fabrizio Patti
23 march 2020
Big swings in the stock exchange starting from 13. To provoke them was the announcement of the Fed: the us central bank has announced that it will purchase an unlimited amount of government bonds to support the financial market. And to support the real economy it will open new lines of lending to companies for $ 300 billion.

The secretary of the treasury Steven Mnuchin he added that the State could pick up shares of companies, including the airlines. And he said that the stimulus package amounts to eur 2 thousand billion dollars.

An announcement shortly before the opening of Wall Street had done rise of 3%, futures on indices the New York stock exchange. But it was a fire of straw, because at the actual start of trading, at 14.30, have been prevailed sales. At this time the Dow Jones drops of 0,86%. In contrast, the Nasdaq, the price of technology stocks, rising 0.60%.

Repercussions were felt also in Europe. The ftse-mib index in Milan just before 13 lost 4%, has had several fluctuations. At 15 he was close to equal: 0.16% on the day. The declines more pronounced in the rest of Europe, -2,50% for the main index in London, -1,40% for the Dax in Frankfurt and for the Cac40 in Paris.
Among the sectors remain in decline in banks, oil&gas and, especially, the industrial securities. An ascent to the utilities , the providers of energy and water.

The greater decline among the titles for Cnh Industrial. Drops 11% after the news of the resignation of the chief executive officer Hubertus Mühlhäuser. The best performance for Nexi, Unipol, Diasorin and Mediobanca.
On the face of the government securities is lowered by 3 points with respect to Friday, the spread Btp Bund. Now it is at an altitude of 197 basis points.