Impending lockdown and Brexit negotiations are a burden

Frankfurt Two far-reaching political decisions on Sunday should decide whether the stock markets start the new trading week with gains or losses. In Germany, the state heads together with Chancellor Angela Merkel are discussing new restrictions on public life in order to get the corona crisis under control. At the same time, the possibly final negotiations in Brexit poker are taking place at European level.

Many stockbrokers firmly expect that the federal government will decide to tighten the pandemic restrictions before Christmas due to the increasing number of corona infections. As a result, the stock exchange traders increasingly held back, says market analyst Milan Cutkovic from the brokerage house Axi. “The situation is also getting worse in other European countries. Despite significant advances in corona vaccines, it is becoming increasingly difficult for investors to ignore the here and now. “

The Brexit negotiations are also hard to ignore: the date of Great Britain’s exit at the end of December has been fixed.

EU Commission chief Ursula von der Leyen and British Prime Minister Boris Johnson have set a deadline of Sunday to resolve the last points of dispute. If the negotiations fail, Great Britain threatens to withdraw from the European internal market at the end of December without a trade agreement.

“The negotiations could lead to success at the very last second, but that is anything but certain,” warns analyst Jochen Stanzl from the online broker CMC Markets. “Investors should prepare for the end of a dirty, no-deal Brexit that will cripple growth at both UK and European levels.”

Government bonds from southern Europe rally