Stocks are tumbling today in Europe after Asian shares drifted lower on geopolitical worries and concerns over the health of the world’s economy. The mood has been clouded overnight by rising tensions between Japan and South Korea and as a trade battle looms between the two nations, the Nikkei-225 index registered the biggest loss in the region with a 1.97% fall. Investors are also concerned by a poor earning season after Canon Inc. showed a 40% drop in operating profit for this year, which also strongly contributed to the Tokyo Index’s decline. Netflix also surprised with a loss in US customers this year; this is particularly concerning for investors as the US has always been the tech giant’s biggest market (44%).
In addition to all these bearish leverages, sentiment has also been dented by the worsening relationship between Washington and Beijing: trade talks have stalled, and the two blocs are struggling to find a fair way out of the HuaWei case.
In Europe, some traders are taking profit on the stock market and increasing their exposure to safe heaven assets prior to the next ECB meeting next week, as many expect Mario Draghi to confirm the central bank’s recent dovish tone. Every EU benchmark is trading lower today with the OMX-30 of Stockholm posting the worst performance so far. The SMI-20 in Zurich is the only stock index to register a positive performance as the prices are being driven by NOVARTIS with a +3.06% performance today after the company delivered a better-than-expected operating margin of 30% (vs 28.7% expected).
While a student, Pierre Veyret had a passion for the financial markets. At the time, he studied International Trade through the setting up of import / export operations and it was the techniques of hedging against exchange rate risks that helped him to make the link with the financial markets, and all especially that of Forex. It is therefore with the aim of anticipating the price of currencies several months in advance that Pierre quickly turned to different methods of analysis by drawing inspiration and surrounding himself with experts in the field. Shortly after, Pierre decided to specialize in Technical Analysis, a discipline he had the opportunity to practice with real market professionals, thanks to AFATE / IFTA, an association of which he has been an active member for several years. Pierre Veyret is passionate about the field of the financial industry with a particular interest in the various techniques of stock market forecasting. Currently, Pierre is based in the City of London where he works as Chief Analyst. He performs regular interventions on a multitude of asset classes through various media (television, internet and print media).
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.