US News Impending Lockdown 2.0 sends stock exchanges downhill
crypto exchanges: Stuttgart stock exchange's crypto trading platform ties Bankhaus Scheich to
BSDEX has recently also cooperated with Bankhaus Scheich. This should increase both liquidity and transparency in the asset class. © Börse Stuttgart A year ago, the Stuttgart Stock Exchange launched a trading platform for Bitcoin and crypto tokens The Frankfurt bank Scheich has connected to the crypto trading platform of the Stuttgart Stock Exchange, BSDEX for short, as the Handelsblatt learned.
- by Hakan Ersen
Frankfurt (Reuters) - For fear of a renewed recession, investors flee the international markets Stock markets.
Dax and EuroStoxХ- $ fell on Wednesday by around four percent each to 11,560.51 and 2953.63 points. On Wall Street, the US standard value index Dow Jones lost three percent.
The second coronavirus wave has Europe firmly under control, said economist Alessia Berardi from asset manager Amundi. The governments are under increasing pressure to drastically restrict public life. In Germany, Chancellor Angela Merkel announced new measures. According to media reports, similar strict restrictions could be introduced in France from Thursday as in the spring.
Delegation of Israel to Sudan to discuss normalization of ties
ISRAEL-DIPLOMACY: Delegation of Israel to Sudan to discuss normalization of ties JERUSALEM (Reuters) - An Israeli delegation paid a rare visit to Sudan on Wednesday in order to discuss a normalization of relations between the two countries, reported Israeli public radio Kan, while a member of the government spoke of a possible major diplomatic breakthrough. No details were given by Kan radio on the content of the exchanges in Khartoum.
"FEAR BAROMETERS" RISE - LOCKDOWN AS AN OPPORTUNITY?
Against this backdrop, the volatility indices VDax and VStoxx, which measure investor nervousness, rose to four and a half month highs of 42.10 and 39.92 points, respectively. The same was true for its US counterpart Vix. The comparable barometer for euro investors reached its highest level since the stock market crash in March.
Video: Corona crisis sends Dax downhill (Reuters)
However, the term "lockdown" should not become a bad word, warned Thomas Gitzel, chief economist at VP Bank. "A short, strict lockdown can be an opportunity." If the chains of infection were broken, consumers would feel safer again and would not practice voluntarily long-term consumption. However, it has not yet been foreseeable that similarly generous aid packages will be launched this time to cushion the economic consequences of the pandemic, said investment strategist Michael Hewson from brokerage firm CMC Markets.
Investors do not give up hope for an economic stimulus package: Dow Jones ultimately higher
Ultimately, optimism outweighed the US stock exchanges. © Provided by Finanz.net Peter Bischoff / Getty Images The Dow Jones opened the session 0.04 percent lower at 28,197.42 points and did not move for a long time. In late trading, however, things went up. At the closing bell, the stock market barometer gained 0.54 percent to 28,363.66 points. On Thursday, the mood on Wall Street had brightened somewhat after a subdued start.
OIL PRICE FALLS - DOLLARS AND BONDS IN DEMAND
Speculations on a decline in demand also sent the oil price down. The Brent variety from the North Sea fell by a good five percent to 39.09 dollars per barrel (159 liters). Selling pressure will be exacerbated by rising US inventories, said Harry Tchilinguirian, chief oil investment strategist at BNP Paribas. In the wake of the oil price, the index for European oil and gas stocks slipped by three percent. The US oil companies Exxon and Chevron each gave about two percent.
At the same time, investors fled to "safe havens" such as federal bonds. This temporarily depressed the return on ten-year stocks to minus 0.646 percent, the lowest level since March. The world's leading currency was also in demand. The dollar index, which reflects the exchange rate against other major currencies, gained half a percent. This hurt the gold price because the precious metal is becoming less attractive to investors outside the US. It was down 1.3 percent to $ 1,881.67 a troy ounce (31.1 grams).
Investors in shock: DAX ends Monday trading deep in the red.
The German stock market fell sharply at the beginning of the week. © Provided by Finanz.net PHILIPPE HUGUEN / AFP / Getty Images At the beginning of trading on Monday, the DAX saw discounts of 2.71 percent to 12,303.41 points, which it widened during the day. Ultimately, he left the trade with a whopping minus 3.71 percent to 12,177.18 points. The clouded view of the software company SAP into the future shocked investors on the German stock market and across Europe on Monday.
TRAVEL AND CAR VALUES UNDER PRESSURE
On the stock market, travel and tourism stocks in particular flew out of the depots. This sector suffers particularly badly from pandemic restrictions. The European industry index fell by three percent. On Wall Street, shares in casino operators like Wynn, airlines like American Airline and cruise lines like Carnival plummeted by up to seven percent.
Deutsche Bank could not escape the general downward trend either, although the institute returned to the black. The stock lost almost two percent. "The numbers are encouraging," said CMC expert Hewson. "The big question, however, is whether they are sustainable.
On the other hand, investors reacted with relief to the lower than feared quarterly loss and the stopped outflow of funds at General Electric (GE). The bar for the Siemens rival was low, however Analyst Gautam Khanna of asset manager Cowen said he preferred other conglomerates like Honeywell. GE shares gained almost ten percent.
After lockdown crash: DAX closes Monday trading strongly .
The new trading week on the German stock market was characterized by recovery. © Provided by Finanz.net PHILIPPE HUGUEN / AFP / Getty Images The DAX opened the new trading week with a small premium, which it was able to expand significantly to a plus of 2.01 percent and thus 11,788.28 points.