Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Investors Flee Disaster Scene As Markets Fear Severe European Covid-19 Restriction

By Spreadex (Connor Campbell)Stock MarketsOct 28, 2020 09:24
uk.investing.com/analysis/investors-flee-disaster-scene-as-markets-fear-severe-european-covid19-restriction-200448935
Investors Flee Disaster Scene As Markets Fear Severe European Covid-19 Restriction
By Spreadex (Connor Campbell)   |  Oct 28, 2020 09:24
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Grim. That’s the only word that can describe the markets on Wednesday morning, investors’ covid-19 fears attacking stock prices in ways not seen since the start of the Western phase of the pandemic back in March.

They’re not wrong to be worried. Emmanuel Macron is likely to announce a month-long national lockdown in France this evening, after the country posted its highest number of daily fatalities since April. Angela Merkel is set to argue for ‘lockdown light’ when she talks to Germany’s regional leaders later today. And in the UK, the daily death total hit its worst levels since May, increasing the call for a nationwide ‘circuit breaker’, rather than the government’s current piecemeal approach.

That’s not to mention the near half a million people who have caught covid in the USA in the space of a week, nor the new case flashpoints that are popping up in China.

As has been the case since March, investors’ concerns aren’t over the number of daily cases and deaths per se, but the severity of the restrictions that will greet each new leap and the crushing impact said measures will have on the global economy. Just when countries had tried to get back to their feet during the third quarter, as it set to be evidenced by the latest GDP figures on Thursday and Friday.

Bags packed and gas tank full, investors fled the markets with the speed and panic of a family trying to escape a disaster scene.

The DAX and CAC, which have spent the week trading off the title of worst hit major index, both shed 3% after the bell. That leaves the German bourse clinging on above 11,700 – just – and at its lowest level in close to 5-months. The French index echoed those lows, as it fell the wrong side of 4600.

As it has done for much of the week, the FTSE managed to keep its losses at the lower end of the day’s declines. Not that that meant much – it still translated to a 2% drop, forcing it to a 6 and a half month nadir of 5625.

At the moment there is little hope of the US markets helping ease the pain whatsoever. The Dow Jones is heading for a 430 point slump, dragging it below 27,050 for the first time in a month.

"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

Investors Flee Disaster Scene As Markets Fear Severe European Covid-19 Restriction
 

Related Articles

Neil Wilson
Mixed Start For Stocks As UK Reopens By Neil Wilson - May 17, 2021

Reopening day in Britain – today is a big step forward for the economy, not so big for the stock market. Markets move well in advance, of course. Reopening trades have performed...

Investors Flee Disaster Scene As Markets Fear Severe European Covid-19 Restriction

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email