This is why Piazza Affari and the European stock exchanges today went into the red.
Sitting in the red for the European stock exchanges, which pay the alarms for slower and more difficult economic growth than expected. These fears, expressed by the Federal Reserve, the American Central Bank, have served as a pretext for speculative operations. Let’s see what really happened on the stock market today, according to ProiezionidiBorsa analysts. This is why Piazza Affari and the European stock exchanges today went into the red.
This is why Piazza Affari and the European stock exchanges today went red
Let’s start with the data. Today the Ftse Mib index (INDEX-FTSEMIB), closed down 1.4% at 19,766 points. The other European squares are also in red, with drops of over 1%, therefore in line with the Milanese price list.
What drove the stock markets down today? The fears, which emerged from the minutes of the last meeting of the FED, about American economic growth. In fact, in the last meeting of the Federal Reserve, it was highlighted how new stimulus measures are needed for businesses and families. Because the estimates on the economic recovery in the US show a fatigue in GDP growth for the coming months.
The FED’s fears are linked to the stars and stripes economy. But that didn’t stop traders from selling early on European equity markets today. Day traders took the opportunity of the negative news to sell the stocks they had earned yesterday and then to monetize. In fact, yesterday Piazza Affari closed on the highs of the day and the most bought shares were the banks. Banks that have been the most sold today, along with energy stocks.
All the fault of day traders
So today the fears related to the growth of the US economy have poured into the European stock exchanges. Are these fears well founded for Europe? In part yes. Although the minutes of the latest ECB meeting, just published, are more optimistic and predict a strong rebound of the EU economy in the third quarter of the year.
In reality, what happened today and that very short-term speculation, took the pretext of negative news to monetize the gains made yesterday. So much so that the Milan Stock Exchange, after the decline at the start, maintained its positions. It hasn’t gone up, but it hasn’t gone down either. That is, there have been no more purchases, but no sales either.
And by the way, when the stock exchanges in Europe closed in the afternoon, the indices on Wall Street were all positive. A signal that US operators are not so alarmed by the FED’s estimates.
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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