Silicon Valley Bank, fear of contagion risk: Milan Stock Exchange collapses

In Piazza Affari, the Ftse Mib loses 4.03%

A decidedly negative day for all European stock exchanges, despite the reassurances that for the Old Continent there will be no risk of generalized contagion from the collapse of Silicon Valley Bank and two other American banks. The US financial authorities, however, had to intervene with ad hoc measures to avoid a possible contagion of the country’s banking system. In Italy, the Ministry of the Economy is closely following the evolution of the situation.

For Filippo Alloatti, head of financials of Federated Hermes, “there are no European banks listed on the stock exchange with a similar business model” and therefore the risks for the Old Continent would be effectively limited. The turbulence triggered by the failure of the Silicon Valley Bank then prompts investors to question the fact that the ECB will raise interest rates by half a percentage point.

At the TTF in Amsterdam, the price of gas fell to 52 euros per megawatt hour. The price of oil also fell, with Brent and Wti falling by about 1%. In Milan, the Ftse Mib lost 4.03% and closed at 25,994.81. The spread between German BTPs and Bunds rose sharply, hovering around 182 basis points. On the other hand, the yield on ten-year bonds fell sharply, at around 4.16%.

Utilities are on the main list of Piazza Affari almost exclusively. Italgas rose by 1.05%, Snam by 0.57% and Terna by 0.61%. Leonardo also did well (+0.09%). Banks are in the queue: Bper loses 9.51%, Intesa Sanpaolo 6.10%, Unicredit 9.01%, Banco Bpm 8.09%, Mediobanca 4.48%, Fineco 6.32% and Banca Mediolanum 7.76%. Pirelli (-5.18%) and Iveco (-4.96%) are also bad. (in collaboration with