Shares tumbled globally on Monday, with prices returning to last week’s lows as the spread of the deadly virus continues to have a big impact on market sentiment. Even though most markets tried to consolidate around major technical support zones last week after one of the steepest declines in decades, investors’ trading stance remains clearly bearish once again this week. The recent monetary and fiscal stimulus packages provided by central banks as well as nations around the globe didn’t have the expected impact on markets as most investors await reassuring data on the virus front. The fact the death toll continues to rise everywhere, with no peak in sight, is the main driving force sending markets lower now. Investors remain very worried to see governments struggling, especially in Europe, to flatten the curve of Covid-19 cases even though a lag certainly exists between draconian measures being taken and actual daily data of new cases and deaths. Elsewhere, the fact the US Congress failed to agree on an aid plan didn’t assure markets and investors are now anticipating US GDP to shrink by a record 30% in Q2.
The worst performers on the Stoxx-600 so far is coming from companies like Linde, BASF and Air Liquide, who have all recorded sharp drops in their share price. The FTSE-100 Index is trading at the bottom of the table today with the price falling below 4,800pts early in the morning before registering a slight rebound to 5,000pts, which is the main resistance for the price now.
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.