The ECB raises rates again and starts the Qt, Piazza Affari sinks

European stock markets close in deep red after the ECB’s decision to raise interest rates by 50 basis points. President Christine Lagarde explained that a “hawkish” hardline will continue in the coming months, with other possible hikes. In March, then, the Quantitative Tightening will start, i.e. the reduction of the bank’s balance sheet, which will translate into fewer purchases of bonds and sales of the current bonds for 15 billion euros a month. However, the euro is running, rising to its highest level since June against the dollar, exceeding the threshold of 1.07 against the greenback.

In Milan, the Ftse Mib lost 3.45% and closed at 23,726.05 points. The spread between German BTPs and Bunds rises dramatically, traveling above 200 basis points. The yield on ten-year bonds also rose sharply, at around 4.1%. Government bonds are therefore in evident tension due to the start of the sales of bonds and btp by the ECB, which will force the market to take charge of the purchase of all bonds.

Saipem (-0.58%) slightly decreased on the main stock exchange of Piazza Affari, announcing two important new contracts in Guyana and Egypt, with a total value of 1.2 billion dollars. On the rise, however, Leonardo (+0.03%).

The rest of the titles are all negative. The worst results are those of Fineco (-6.35%), Intesa Sanpaolo (-4.46%), Generali (-4.72%), Hera (-5.02%), Amplifon (-5.47% ), Azimut (-3.95%), Iveco (-4.81%), Moncler (-4.08%), Nexi (-5.24%), Poste (-5.22%), Mediobanca (- 3.64%), Snam (-4.38%), Stm (-4.95%) and Terna (-3.49%). Enel slightly contained the decline (-3.75%), which signed an exclusive agreement with a Greek company, Public Power Corporation (PPC), to start the potential sale of the stakes it owns in Romania. (in collaboration with