Covid-19 Crisis And Trump’s Stimulus Smack Down Leads To Further European Losses

Covid-19 Crisis And Trump’s Stimulus Smack Down Leads To Further European Losses

Spreadex  | Oct 22, 2020 09:29

Western markets couldn’t shake their malaise on Thursday, struck down by covid-19 fears and dimming stimulus hopes.

Rising coronavirus cases around the globe, and the corresponding threat of further, and harsher, lockdown measures has been on the mind of the markets all month, and today was no different.

Add onto that a reversal in the likelihood of a covid-19 relief package being passed before the election in the US –Trump poured scorn on Nancy Pelosi and Chuck Schumer in a tweet accusing the Democrats of failing to compromise on a deal – and you had the perfect storm for a troubled open.

The FTSE – which had a hell of a time of it on Wednesday following the pound’s Brexit gains – dropped 0.6%, causing it to tumble below 5750 for the first time since the start of May. It would’ve been worse off if sterling hadn’t given back a sliver of yesterday’s blockbuster rebound, the currency dipping 0.2% against the dollar and euro alike.

In the Eurozone the session’s losses were even more pronounced. With daily German covid-19 cases crossing the 10,000 mark for the first time, the DAX continued to unravel, shrinking by 1.2% to hit a near 12-week nadir of 12,410. And as France sees cases hit the 1 million mark – hot on the heels of Spain, which became the first European nation to pass that terrifying milestone – the CAC shed 0.9%, falling to 4800.

Slipping 100-ish points last night, the Dow Jones is set to avoid the same kind of losses as Europe – though there is a long way to go between now and the US open. The futures are pointing to an 85 point decline, one that would leave the Dow at a 2-week low of 28,125.

"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."

Original Post

Spreadex

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.

';