Timidity returns to the stock markets amid the accelerating pandemic
Fear of the economic effects of the coronavirus pandemic is once again flooding the minds of investors and once again slowing down progress on European stock markets. Not even the positive news around the clinical trials of the vaccine from AstraZeneca and the University of Oxford, which join those of Pfizer and Moderna, are preventing European stock markets from registering losses in the first hour.
The new restrictions adopted to stop the advance of the pandemic in some cities, such as New York, along with the increase in infections and deaths in several European countries and the increase in protests against confinement measures have raised the alarms of analysts, who fear further cuts in economic growth forecasts.
In the middle of the session, here's what we noticed:
- The German DAX has been, among the main European indices, the one that registered the greatest losses, with a fall of 1%
- A sharp fall in ThyssenKrupp shares (-7.8%) after announcing that it plans to eliminate 7,400 jobs in the next three years to minimize the impact of the pandemic. These layoffs are in addition to the other 3,600 jobs it has already cut
- The FTSE 100 and the CAC 40 lost around 0.8% at the same time
- The Spanish IBEX 35 fell 0.92%
- The Italian FTSE MIB dropped around 0.3%
Wall Street futures also announced falls after closing yesterday with losses.
Source: Admiral Markets MetaTrader 5. Weekly CFD DAX chart. Data range: from April 19, 2015, to November 19, 2020. Prepared on November 19, 2020, at 11:30 am CET. Keep in mind that past returns do not guarantee future returns.
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