European stock markets fall due to new restrictions against Covid

October 26, 2020 15:00

The European indices have opened the last week of October with falls due to the worsening of the second wave of Covid infections and the new mobility restrictions that different governments are adopting to stop the pandemic. Added to this situation is the profit warning announced by software giant SAP and the differences between Democrats and Republicans in the United States in coming to an agreement on a new package of stimulus measures.

The German DAX was the index that registered the greatest falls at midday (CET), with a decline of 2.2%, dragged down by SAP's profit warning. The German company has announced that, due to the second wave of coronavirus, it will take longer than expected to recover and, therefore, has reduced its forecasts for the next few years. SAP shares have fallen by more than 20%.

Source: Admiral Markets MetaTrader 5. Daily CFD SAP chart. Data range: from June 19, 2020, to October 26, 2020. Prepared on October 26, 2020, at 12 noon. Keep in mind that past returns do not guarantee future returns.

In the graph, we can see the huge gap drawn by the price of SAP and how it has plummeted since the close on Friday. So far, in 2020, the German shares have accumulated a fall of more than 15%. In the past five years, it closed in the negative in 2018 only.

The EuroStoxx 50 has also shown falls of more than 1%. The French CAC 40 fell less sharply, 0.5%, in line with the Italian FTSE MIB index.

In the United States, in the pre-opening of Wall Street there were also falls in the main indices pending progress on the economic stimulus discussion.


Did you know that with Admiral Markets UK Ltd, you can trade stock indices when they rise or fall thanks to Contracts for Difference (CFDs)? If you are interested in starting trading CFDs, just click on the following banner and open a live trading account:


INFORMATION ON ANALYTICAL MATERIALS:

The data provided provides additional information on all analyzes, estimates, forecasts, forecasts, market reviews, weekly outlooks or other evaluations or similar information (hereinafter "Analysis") published on the Admiral Markets website. Before making any investment decisions, pay close attention to the following:

1. This is a marketing communication. The content is posted for informational purposes only and should not be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on pre-dissemination of investment research.

2. Each investment decision is made by each client alone, while Admiral Markets UK Ltd (Admiral Markets) will not be liable for any loss or damage arising from such a decision, whether based on content or not.

3. In order to protect the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.

4. The analysis is prepared by an independent analyst, Carolina Caro, SEO implementer (hereinafter "Author") based on personal estimates.

5. While all reasonable efforts are made to ensure that all sources of content are reliable and that all information is presented, as much as possible, in an understandable, timely, accurate, and complete manner, Admiral Markets does not guarantee accuracy. or integrity of any information contained in the Analysis.

6. Any past performance or modelling of the financial instruments indicated in the content should not be construed as an express or implied promise, guarantee, or implication of Admiral Markets for any future performance. The value of the financial instrument may rise and fall, and the preservation of the asset's value is not guaranteed.

7. Leveraged products (including contracts for difference) are speculative in nature and may generate profit or loss. Before you start trading, make sure you fully understand the risks.


Avatar-Admirals
Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.