Slight rebound in European stocks awaiting the ECB
European markets posted slight rebounds after the heavy losses they recorded yesterday when they fell to May levels due to new restrictions to deal with the Covid-19 pandemic. Caution has been imposed on the main stock indexes, with minimal increases, not exceeding 0.3%, pending the monetary policy meeting of the European Central Bank (ECB) and the subsequent appearance of Christine Lagarde.
Although no major announcements are expected at the ECB meeting, Lagarde is expected to offer clues about the measures that the body is expected to adopt in December to alleviate the economic effects of the Covid-19 pandemic.
Investors are also awaiting growth data on the GDP of the United States in the third quarter. An increase of around 32% is expected after the historic drop of 31.4% in the second quarter. Wall Street futures also point to slight increases, along with Europe, while waiting to get the GDP data. Yesterday, the main US indices fell more than 3%, in line with Europeans.
In this context of uncertainty and fear of the effect of the new confinements in Europe, the VIX volatility index maintains its upward trend and is close to 40 points. This psychological threshold of 40 points has only been exceeded 6 times, in moments of panic such as after the 9/11 attacks or after the outbreak of the financial crisis. The last time was in March 2020, when the Covid-19 pandemic was declared.
Source: Admiral Markets MetaTrader 5. VIX Futures CFD Chart. Data range: February 26, 2020, to October 29, 2020. Prepared on October 29, 2020, at 12:20 p.m. Keep in mind that past returns do not guarantee future returns.
Did you know that with Admiral Markets UK Ltd you can invest in the VIX index? Just open a demo trading account or a real account, choose the 'Volatility Index Futures' symbol in your MetaTrader and start trading! Click on the following banner for more information:
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.