Why did the stock exchanges collapse? What caused the prices of European markets and Wall Street to drop so abruptly? The reasons are related to macroeconomic factors. But technical factors such as price overvaluation, particularly on Wall Street, also played a role.
Let’s try to understand what happened today, starting from the dimensions of the fall which was sudden and profound. The decline started in Asia and the Pacific, especially China and Japan.
The Chinese indices closed the session with decreases of less than one percentage point and the same happened to the Japanese Nikkei 225 index. From these two countries, two news came that added together were a bomb for the Old Continent’s stock exchanges.
Disturbing news has spread about the growth of the Chinese economy. In addition, Japan has declared a state of emergency in Tokyo due to Covid, in view of the start of the Olympics.
Panic on the markets, the stock exchanges collapse and Piazza Affari collapses for this reason
These two factors together have spread fear among financial operators that the economic recovery will start to slow down. In addition to this we must add that of the new applications for unemployment benefits in the USA. These have risen, indicating a slowdown in job creation. That’s why there is panic on the markets, the stock exchanges collapse and Piazza Affari collapses for this reason.
So today the European stock exchanges all opened in decline and the deep red was accentuated throughout the day. By the time equity markets in Europe closed, Wall Street was losing around one percentage point.
At the end of the day no price list is saved. The German stock market lost 1.8%, the French stock market fell by 2%, London lost 1.6%. Madrid was also heavy and lost 2.3%. Numbers that make it clear that the collapse is generalized.
But the Italian stock exchange was the worst of all. The Ftse Mib (INDEX:FTSEMIB) closed down 2.5% to 24,641 points. Needless to say, we have been easy prophets and that for a few days the Bag Projection Experts have been warning their readers.
In the last analysis, “Piazza Affari floats but pay attention to what can happen because it could surprise you”, We indicated at 24,900 / 25,000 points a support not to be violated. We wrote that below this level, prices would speed down. That’s what happened today.
Deepening
This the multidays analysis and the analysis of international markets by the ProiezionidiBorsa Research Department
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(We remind you to carefully read the warnings regarding this article, which can be consulted who”)
