European stock markets fall mid-trading day due to uncertainty
The main European indices began today's trading day on a high for the second day in a row, in anticipation of a new stimulus package in the US and the approval of a second vaccine against the Covid-19 from Moderna. However, in the middle of the trading day, the stock markets suddenly fell, and in the case of London, Milan, and Rome, they were trading in the red. Only the German DAX and the French CAC 40 were green by 1pm, albeit with very timid rises.
Source: Admiral Markets MetaTrader 5. DAX 30 weekly chart. Data range: November 29, 2009 to January 7, 2021. Prepared on January 7, 2021 at 1:30 p.m. CET. Keep in mind that past returns do not guarantee future returns.
Despite the pandemic, the DAX 30 closed 2020 with a rise of around 3.6%, leading the main German index to hit all-time highs. Other indices such as the Euro Stoxx, the CAC 40 or the FTSE 100, however, closed with losses of between 5% and 14%.
The new mobility restrictions adopted in England and Scotland and that could be extended to other countries to curb an uncontrolled pandemic continue to generate uncertainty, although economic confidence in the euro area rose in December to 90.4 points from 87.7 the previous month, according to data from the European Commission.
The economic data, however, remains unfavourable. The inflation rate in the euro area remains in negative territory for the fifth consecutive month, as it ended December at -0.3%, according to Eurostat, the European statistical office.
To alleviate the effects of the crisis, the European Central Bank (ECB) has increased the purchases of debt in the eurozone and will extend the acquisitions until March 2022.
In 2016 the DAX rose by 6.87%, in 2017 by 12.51%, in 2018 it lost by 18.26% in 2019 it rose by 25.48 % and in 2020 it rose 3.6%.
Do you know that with Admiral Markets you can speculate on the movement of index prices Europeans, whether they go up or down? This is possible thanks to Contracts for Difference (CFD). Click on the following banner if you want to open a real trading account and start trading:
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:
- 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.
- 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.
- 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.
- The analysis is prepared by an independent analyst, Carolina Caro, SEO implementer (hereinafter "Author") based on personal estimates.
- 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.
- 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.