Today stock markets in tilt with significant drops. An unexpected start to the week in the size of the decline. Descent that wiped out all short-term supports and introduced a new scenario for the markets for this week.
Attention because the fear has returned to the markets also because of this reason. Let’s find out thanks to the analysis of the Study Office of Proiezionidiborsa.
Be careful because fear has returned to the markets also due to this reason
The rekindling of fears about the spread of the pandemic in Europe and in the world has sent all the stock markets down. Only one closed positive in the first session of the week, the Japanese Nikkei 225 index.
The American stock exchange will close only in the late evening, at 22:00 Italian time. But indices will hardly be able to recover the losses incurred at startup. After two hours of trading, Wall Street was losing 2% on average.
We will see how it will go on the American market. Meanwhile, we know how it went in Europe. Very bad. The Ftse Mib index (INDEX:FTSEMIB), closed down 3.7%, finishing at 18,793 points. The German Dax index did much worse, falling by 4.4%.
The excuse for bringing prices down was the worsening of the Covid pandemic around the world. Certainly the danger exists, but not so serious as to cause prices to collapse in this way.
The feeling that the fear of the pandemic is an excuse
The feeling is that traders have been looking for a reason to unload the overbought of the US markets. The share prices, which have been running for months and at historic highs, need to correct a bit and return to average interesting values.
What is surprising is the reaction of the stock exchanges of the Old Continent, a collapse of this size and so sudden, was not imaginable on Friday. The fall was concentrated in the early hours of the morning. There was an attempt to rebound at lunchtime, due to cover-ups by those who went short in the open since early morning. Then with the negative opening of Wall Street sales resumed.
It is very likely that we are on the eve of a strong correction. Not long in time but important in size.
Deepening
To know the multidays analysis and the point of view of the international markets of the ProiezionidiBorsa Study Office, click who.
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