January 22, 2021 14:30
The COVID-19 pandemic is once again spreading, forcing European governments to adopt new measures including restrictions on mobility which threaten economic recovery. In the United States, President Joe Bien also has also announced measures to combat the contagion, while China renews lockdown orders. In this context, European stock markets follow in the wake of Asia’s, and opened in the red this morning.
Pessimism in the markets increased after the PMI data release, which measures the activity of the service and manufacturing sectors, for the month of January which reflects a decline of 1.6 points to 47.5 points. “It seems more and more inevitable that the eurozone economy will go through a double-dip recession,” warns Chris Williamson, chief economist at IHS Markit, which publishes the PMI index.
Yesterday, president of the European Central Bank (ECB), Christine Lagarde warned that this third wave of COVID-19 infections is affecting the economic recovery, particularly in the service sector. For this reason, she insists on the need to maintain the stimuli.
Among the European indices, the one with the greatest losses in the middle of the session was the Italian FTSE MIB, with a decline of more than 2%. It was followed by the Spanish IBEX 35 (-1.8%), the French CAC 40 (- 1.36%), the German DAX (1.06%) and the FTSE 100 (-0.90%).
The futures of Wall Street also announce falls, although not as pronounced as in Europe. The US indices put an end to the all-time highs of these days for the moment.
Source: Admiral Markets MetaTrader 5. S&P500 daily chart. Data range: from December 20, 2019 to January 22, 2021. Prepared on January 22, 2021 at 12:30 CET. Keep in mind that past returns do not guarantee future returns.
With an Admiral Markets Trade.MT5 account, you can trade Contracts for Difference (CFDs) on the S&P500 and other leading stock indices! CFDs allow traders to try to profit from both bull and bear markets, as well as profit from the use of leverage. Click on the following banner to open an account today:
INFORMATION ON ANALYTICAL MATERIALS:
The data provided provides additional information on all analyzes, estimates, forecasts, forecasts, market reviews, weekly outlooks or other evaluations or similar information (hereinafter “Analysis”) published on the Admiral Markets website. Before making any investment decisions, pay close attention to the following:
- This is a marketing communication. The content is posted for informational purposes only and should not be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and is not subject to any prohibition on pre-dissemination of investment research.
- Each investment decision is made by each client alone, while Admiral Markets UK Ltd (Admiral Markets) will not be liable for any loss or damage arising from such a decision, whether based on content or not.
- In order to protect the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for the prevention and management of conflicts of interest.
- The analysis is prepared by an independent analyst, Carolina Caro, SEO implementer (hereinafter “Author”) based on personal estimates.
- While all reasonable efforts are made to ensure that all sources of content are reliable and that all information is presented, as much as possible, in an understandable, timely, accurate, and complete manner, Admiral Markets does not guarantee accuracy. or integrity of any information contained in the Analysis.
- Any past performance or modelling of the financial instruments indicated in the content should not be construed as an express or implied promise, guarantee, or implication of Admiral Markets for any future performance. The value of the financial instrument may rise and fall, and the preservation of the asset’s value is not guaranteed.
7. Leveraged products (including contracts for difference) are speculative in nature and may generate profit or loss. Before you start trading, make sure you fully understand the risks.