After seven sessions on the rise, a setback was inevitable for Piazza Affari. It is not the decline, modest in itself, that worries operators. It is the scenario that is being designed in Europe and that has sent all the price lists of the Old Continent into red, which is alarming.
Contagions from Covid are rapidly multiplying and the main capitals of the continent risk having to introduce new quarantines. That’s why traders are worried and why the stock exchanges closed lower. Here are the details of the day in the analysis of the ProiezionidiBorsa Studies Office.
Why traders are worried and why the stock exchanges closed lower
Piazza Affari ended the session with a limited loss. The Ftse Mib index (INDEX:FTSEMIB), lost 0.8%, closing at 19,558 points. The decline is not so much worrying, but how it happened and the context in which it matured.
Prices triggered lower trading. In the first two hours they fell, and then climbed up and canceled the losses in the second part of the morning. But it was around noon that there was a new reversal and the prices started to fall again. The decline only ended thanks to the end of trading.
The first reflection that comes to mind is that prices started to drop again around 12.00. At that time, the first information on the possible opening of the Stock Exchange began to arrive from Wall Street. It is legitimate to wonder how much the signs of a negative opening of the US stock market have influenced.
Covid is starting to worry
The second reflection, always of a technical nature, concerns the price trend of the day. Today’s session marked a lower high than yesterday’s and a much lower low than yesterday’s. And if prices do not rise again tomorrow, the bullish scenario of the last few sessions could turn bearish again.
Finally, the spread of the infection and the measures that the various European capitals are taking to stop Covid are worrying. Measures that could further damage the economic recovery, which should have a rebound in this last quarter.
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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