Not the pandemic but this news is shaking the stock exchanges that accuse a worrying decline

All the lists of the Old Continent today suffered a sharp decline due to a series of factors that are negatively affecting the markets. Traders are worried about the pandemic and tapering, but an analysis of a major American commercial bank alarms even more. Not the pandemic but this news is shaking the stock markets which are accusing a worrying decline in Europe and fibrillation in the USA.

The declines in Europe started right from the start of today’s session. Fears of a slowdown in economic growth in the US are starting to become more and more concrete. The halt that the US job market underwent last week raises concerns. To this factor we must also add the fear of the increase in infections of the Delta variant of Covid in the autumn. These two factors combined could slow American economic growth. Obviously this would have major repercussions on the stars and stripes stock market.

Not the pandemic but this news is shaking the stock exchanges that accuse a worrying decline

Analysts of the major investment bank Morgan Stanley in an analysis argue that the US stock market could correct by 10% in the fall. This news is probably the cause that today made all the European markets open in a marked decline.

Tomorrow’s ECB meeting is another disturbing factor for the markets. The Board of the European Central Bank must decide on the monetary policy strategy to be adopted for the next three months. Most analysts are convinced that the discussion will focus on the PEPP, the emergency plan for the repurchase of government bonds. The ECB could decide to start reducing market interventions, and then end the PEPP in March 2022. Currently, the PEPP foresees up to € 80 billion in purchases per month. Tomorrow the board could decide to reduce the monthly PEPP for the next quarter to 60 billion and then bring it to zero by March 2022.

Returning to today’s session, today the Ftse Mib index (INDEX:FTSEMIB) after a start below 26,000 points, broke through the support of 25,900 points. In just a few minutes, prices plummeted to 25,700 points, confirming the scenario outlined by our analysts in this analysis. Fortunately, the support at 25,700 points held up and Piazza Affari rose again in the second part of the morning to cancel the losses. Too bad Wall Street’s weak opening has pushed prices down again. At the end of the session, the major index of Piazza Affari closed down by 0.7% to 25,875 points.

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