Last week’s risk-off trading tone has clearly been confirmed on the opening bell on Monday after European markets all drifted significantly lower as traders weigh worrying developments on the Coronavirus front. The growing number of new cases in Wuhan and, more importantly, outside China has caused investors adopt a more cautious trading stance this week. The situation in South Korea, where the virus alert is set at the highest level, sparked fresh concerns about the rate of spread of the virus as well as the damage being done to Asian economies. The government has moved to reassure investors and limit the impact of the virus on the economy by announcing two extra budget plans. The measures will seek to sustain the domestic economy by boosting imports/exports and increase finance for measures to contain the virus outbreak. However, this is likely to remain insufficient in the short-term for most investors who are already proceeding with portfolio adjustments that seek to hedge the risk – especially after China announced a potential rebound in cases.
All markets are trading lower in Europe, driven down by miners and carmakers, but the worst performance is seen on the Italian FTSE-MIB index from Milan where the market opened with an 870-point bearish gap today. Prices are now trading close to 23,670 pts, one of the last support zones before 23,300 and 23,100 pts.
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).
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© 2019 High Leverage FX - All Rights Reserved.