Stocks bounce. After yesterday’s bad session, stock markets are finding their way higher. The obvious gains are spread across all European stock exchanges, slightly more on Wall Street which opened with a cautious rise. The recovery was also great in Milan, in keeping with what had been hoped for This article by our analysts. But after the fear, operators are now wondering what might happen in the upcoming sessions. Whether what happened yesterday was an occasional thunderstorm or the beginning of bad weather.
After spooking in Piazza Avari, the calm is back a bit, but how long will it last?
Yesterday, European stock exchanges recorded the worst session in the past two months. The Milan Stock Exchange was on the verge of collapse. If the main indicator for Piazza Afari, then Ftse Mib (Index: FTSEMIB), had broken the 25,000 point support, and it could have gone down another 400 pips. Fortunately, not only did the support at 25,000 points hold today, but the prices closed above 25,300 points. As explained in a previous article, it was important for the Ftse Mib to come back above 25,300 points, because it could have been a reaction signal. At the end of the session, prices closed at 25,353 points, but by midday they also exceeded 25,400 points.
After spooking in Piazza Avari, the calm is back a bit, but how long will it last? This is the question operators ask themselves. Also, because yesterday’s short-sold cover-ups are responsible for much of today’s recovery. We need to wait for the upcoming sessions of this week to understand if yesterday’s session was just a storm or something more serious.
In the recovery period, the stock shortage in the sector stands out
Looking at the Italian blue-chips, which were the best performers today, the lack of stocks in an important sector is eye-catching. Today Amplifon has gained nearly 5%, Saipem 3.2%, Poste 2.8%, Fineco 2.8%, Campari 2.6%, Inwit 2.3%, etc. But where are the banks? Except for Fineco, shares of banks that were hit hard yesterday, rebounded slightly today. BPER Banca gained 1.3%, Unicredit and Intesa Sanpaolo 0.8%, and Banco BPM 0.5%. Bank stocks were bought today in very small quantities and this is not a good sign. We must remember that This sector is the judge and can alone decide the success of the stock exchange Milan and his failure.
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