The first session of the Christmas week began with a sharp decline in Western stock exchanges and a nice rise in Pacific stock exchanges. But that’s not the only oddity of the day. There is another, which has led more than one analyst to ask questions. Let’s find out what it is thanks to the Analysis of the ProiezionidiBorsa Studies Office.
The bags crash
It was a very heavy day for the stock exchanges, as we have not seen for a few months. If you scroll through the price list with the trend of the world squares, you can see only red lines, a sign of losses for all lists.
The only stock exchanges that have made progress are the Chinese and Korean ones. With a slight decrease of the Japanese one, of 0.18%. And this has a clear motivation linked to the reason for the fall in the stock markets.
The collapse of the European lists, which occurred immediately at the start of the session, has a clear culprit. The stock exchanges crashed due to the discovery in Britain of a variant of the coronavirus. The fear is that this variant will slow down the spread of the vaccine and could slow down the return to normalcy of European economies.
What is the reason for the strange phenomenon that has hit the stock markets today?
Why weren’t the Pacific stock exchanges affected by the decline? Because in both China and Korea, the coronavirus has almost been eradicated. And even in Japan, the situation is not serious.
In this regard, it is curious to note how the English stock exchange has lost less than the other main European squares. On Piazza Affari the Ftse Mib index (INDEX:FTSEMIB), lost 2.6%, finishing at 21,410 points. The German Dax index lost 2.8%, Paris 2.4%, the Madrid Stock Exchange over 3%. London, on the other hand, closed with a loss of 1.7%.
How is it possible that the coronavirus variant developed in the UK but the continent’s stock exchanges paid the highest price?
A possible explanation
What is the reason for the strange phenomenon that has hit the stock markets today? Traders probably took advantage of the negative news to ease their positions ahead of the Christmas holidays and the end of the year. An excuse to sell and wait until January 7 to go back to buying. If, in the meantime, nothing else will happen.
Deepening
This multidays analysis and analysis of international markets by the ProiezionidiBorsa Research Department
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