Moscow stock exchange in sharp decline (- 6%) dragged down by the collapse of Gazprom (- 25%). The state-owned gas giant, which now capitalizes $ 110 billion, has announced the suspension of its dividend distribution plan. Last May the group, 38% controlled by the Russian state, heralded a record coupon due to the rise in gas prices. Today it became known that Russia’s domestic product fell 4.3% in May. This was stated by the Ria Novosti agency citing the Moscow Ministry of Economic Development. According to the ministry, the main factors of decline are the restrictions in transport and logistics, as well as the reduction in domestic demand. In May, the production of cars was practically zero. Those that came out of the Russian factories were barely 3,700 cars, 97% less than in May of last year. They remained operational in the country only two out of 20 car plantsafter major carmakers ceased production and sales following the invasion of Ukraine. In Frankfurt loses more than 13% Uniper, main German buyer of Russian gas. The company has sounded an earnings alert due to lower deliveries from Russia. Uniper also assumes the request for a public support.
In general, today is for now a day of weakness on the markets. Asian stock exchanges closed in red (Nikkei – 1,5%, Honk Kong – 0.6%). In Europe, London loses 1.6%, Frankfurt 2.1% while Paris falls by 2%. Downhill too Piazza Affari (- 2.4%). New collapse for Saipem down by 16%, the group is grappling with a € 2 billion capital increase at a strong discount. Downhill too Unicredit (- 5.4%) and Iveco (- 4.8%). They hold Snam, Terna and Amplifon. The words of the president of the supervisory board of the European Central Bank did not help Andrea Enrique. “The current environment” is “characterized by greater volatility and lower equity valuations, as markets predict that banks’ profitability and asset quality could be affected by adverse macroeconomic developments. The macroeconomic projections of the Eurosystem staff of June 2022 introduce for the first time a bearish scenario involving a possible recession in 2023 after interruptions in energy supply of the euro area, ”he said.