Pessimism floods European indices due to deterioration in German consumer confidence

0
23
Pessimism floods European indices due to deterioration in German consumer confidence

Pessimism floods European indices due to deterioration in German consumer confidence

Pessimism floods European indices due to deterioration in German consumer confidence

European indices have turned red and fallen to one-month lows dragged down by the drop in German consumer confidence beyond expectations. According to German institute GfK, the consumer confidence index compared to November has worsened to -3.1 points from -1.7 points the previous month. This is a larger drop than expected.

Uncertainty and fear of new restrictive measures to deal with the second wave of infections in Europe, which are accelerating, has led German consumers to opt for savings. This data joins data published a week ago on German investor confidence: the ZEW confidence index plummeted in October, going from 77.4 points to 56.1 points – more than expected.

This pessimism is spreading through European markets, with their main stock indices tinted red. At 11 a.m. (EET):

  • The DAX fell 0.73% to 12,464 points
  • The CAC 40 fell 0.56% to 4,828 points
  • The EuroStoxx 50 fell 0.61% to 3,161 points
  • The IBEX 35 fell 0.52% to 6776 points.

The FTSE 100, meanwhile, fell 0.30% to 5,758 points as IAG (owner of the British Airways and Iberia brands) announced a loss of 1.3 billion euros in the third quarter.

Admiral Markets MetaTrader 5. Daily CFD DAX chartSource: Admiral Markets MetaTrader 5. Daily CFD DAX chart. Data range: from June 26, 2019, to October 22, 2020. Prepared on October 22, 2020, at 11 a.m. Keep in mind that past returns do not guarantee future returns.

In the graph, we see the performance of the DAX over the last year. Although it has managed to recover part of what was lost in the collapse at the end of February when the coronavirus pandemic spread through Europe, it has not managed to rebound strongly from the support of 12,500 points.

So far, in 2020, the index has fallen by 5.8%. In the last five years, the DAX has only closed one year negative, in 2018, when it closed with a decline in the stock market of 18.26%.

Did you know that with Admiral Markets UK Ltd you can speculate not only on bullish movements but also on the bears of the DAX thanks to Contracts for Difference (CFDs)? If you are interested in starting to trade CFDs, just click on the following banner and open a live trading account:

Trade Forex & CFDs

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:

1. 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.

2. 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.

3. 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.

4. The analysis is prepared by an independent analyst, Carolina Caro, SEO implementer (hereinafter “Author”) based on personal estimates.

5. 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.

6. 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.

Source : https://admiralmarkets.com/analytics/traders-blog/deterioration-confidence-november