FXTM information and reviews
FXTM
93%
IronFX information and reviews
IronFX
92%
Libertex information and reviews
Libertex
91%
FXCC information and reviews
FXCC
90%
Markets.com information and reviews
Markets.com
89%
FxPro information and reviews
FxPro
88%

Stocks bargain hunting keeps markets afloat


25 February 2020

Wall Street experienced the strongest collapse in two years on Monday, showing a 3.5% drop in key stock indices. European indices faced a similar failure, returning to levels of early February.

At the beginning of the month, the Chinese authorities managed to calm the markets by abundant liquidity injections and promises of fiscal stimulus. Italy is now choosing a similar tactic, stating that it is considering various incentives, including mortgage holidays in areas particularly affected by the coronavirus. All these measures bring calm back to the markets, but they are hardly a solution to the central problem.

Investors should be prepared for the new sudden index drops if new facts of coronavirus spreading across countries and regions emerge.

If we look at the situation in the short-term, panic sales have stopped. On Tuesday morning, indices are bouncing back from local lows reached the day before. The Nasdaq seemed attractive to buyers after the decline to 9000 and touching the 50-day average. The Dow Jones 30 enjoyed the influx of buyers after dipping to 28,000 at the end of the day on Monday. The Nikkei225 adds 2.8% against Monday’s low, also gaining support from the 200 SMA and proximity to the round level 22000.

However, the significance of these market movements should not be overestimated. The dynamics of the beginning of the day on Tuesday is more like an attempt by investors or algorithmic trading robots to buy at a discount unnecessarily drastically falling indices and stocks. At the same time, the problem of coronavirus proliferation is far from being solved, as well as logistical problems related with suspension of factories and the breakdown of components supply chains. Against the backdrop of such conditions, the rebound may not last long.

#source

Related

Oil reached a 2018 high
Oil reached a 2018 high

Oil prices are rising for the fourth day in a row. On September 24 trades, the Brent price reached its maximum since 2018. According to analysts, the price rise is influenced...

28 Sep 2021

German Elections In Focus
German Elections In Focus

Futures in the United States are rising, while those in Europe are falling as Germany gives its final verdict on its newly elected Chancellor. Germany is a European powerhouse...

27 Sep 2021

US Dollar Index gathers traction and tests 93.40
US Dollar Index gathers traction and tests 93.40

The greenback, when tracked by the US Dollar Index (DXY), starts the week on the same upbeat mood that finished the last one and re-visits the 9240/50 band on Monday...

27 Sep 2021

Space tourism takes off and opens colossal market
Space tourism takes off and opens colossal market

Space tourism is definitely on the rise. According to Bank of America Merrill Lynch, it could represent USD 2.700 billion by 2045, against 400 billion today...

24 Sep 2021

All Eyes On The BOE Meeting
All Eyes On The BOE Meeting

US and European futures are trading higher today, following the Fed’s announcement yesterday that the economy is exhibiting signs of strength and...

23 Sep 2021

Stocks steady on Evergrande debt assurance
Stocks steady on Evergrande debt assurance

Equities were mostly recovering on Wednesday as market nerves were somewhat calmed after China’s troubled property giant, Evergrande, told investors it will meet

23 Sep 2021


Editors' Picks

OctaFX information and reviews
OctaFX
86%
HotForex information and reviews
HotForex
85%
XM information and reviews
XM
80%
FXCM information and reviews
FXCM
79%
Vantage FX information and reviews
Vantage FX
78%
Moneta Markets information and reviews
Moneta Markets
77%

© 2006-2021 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.