قالب وردپرس درنا توس
Home / Business / With France approaching the country’s blockade, investors evaded risks, selling stocks and buying bonds

With France approaching the country’s blockade, investors evaded risks, selling stocks and buying bonds



File photo: This illustrated photo taken in Nantes, France on June 2, 2020 shows a screenshot of the tracking app StopCovid on a mobile phone.  REUTERS / Stephane Mahe / Illustration / File Photo
File photo: Coronavirus disease (COVID-19) outbreak in France

  • The fall in the US stock market indicated that Wall Street fell further later, while in Europe, the Stoxx 50 index of top stocks in the Eurozone hit its lowest level in four months.
  • The surge in French cases may lead to another country̵
    7;s blockade, which has hit the euro, oil prices, and especially French bank stocks.
  • Axi’s market analyst Milan Cutkovic said: “The market has begun to lock in further pricing-partially or completely.”
  • Visit Business Insider’s homepage for more stories.

Given that the economic center of the euro zone began to implement more lock-in restrictions, investors fleeing risky assets, causing European stock markets to fall to a four-month low and meeting the demand for safe-haven Treasury bonds, global stock markets came under fire on Wednesday.

The tension before the US presidential election next week intensified risk aversion, as the record increase in COVID-19 cases in the United States made it possible for people to campaign against the White House more intensely than expected.

U.S. stock futures fell between 0.9% and 1.6%, indicating that Wall Street has subsequently fallen, and investors will have to digest large amounts of earnings from companies such as Boeing, Visa, MasterCard and Etsy. The U.S. 10-year U.S. Treasury bond yield fell to its lowest in more than a week, reflecting investor demand for safe-haven assets.

The Stoxx 50 index of top stocks in the Eurozone fell 3.3% to its lowest level since the end of May, the biggest one-day drop in a month. The index has now fallen nearly 7% in October, the biggest drop in a month since March.

Every major equity industry is at a loss, with banks and oil and gas indexes suffering the most, falling by 3.8% and 3.4% respectively.

The coronavirus pandemic has brought a greater threat of destruction to the economy. Oil prices plummeted by nearly 4%. Investors flocked to the relative safety of the U.S. dollar and the U.S. dollar index rose by 0.4%.

“There are rumors that Germany and France are about to announce a nationwide blockade, so it is not surprising that those economic concerns are concentrated around Europe. At the same time, as the US election next week, traders have enough Reasons for hesitation,” said Joshua Mahony, an analyst at IG Markets.

read more: Morgan Stanley (MORGAN STANLEY): With the new bull market facing rising risks, the stock market may fall another 9%, and these two cyclical industries are the best long-term trading opportunities (

Bank stocks are one of the stocks most vulnerable to fluctuations in investor confidence in the economy, and many heavyweight financial stocks in the region have also come under fire. Investors retained the harshest penalties for the Bank of France, causing the Bank of France, Credit Agricole, BNP Paribas and Societe Generale to fall by 6-7%.

According to the French daily Liberation, France may fall into a national lockdown again this week, as the increasing number of COVID-19 cases prompted President Emmanuel Macron to address the country on Wednesday night.

VDAX-New, which reflects investors’ risk appetite, rose nearly 13% to its highest level since the end of June. The yield on German 10-year bonds fell 3 basis points to -0.636%, the lowest level since the coronavirus market crisis occurred in early March. The French bond yield is almost unchanged at -0.33%.

“The market has already begun to price further lock-in-partial lock-in or full lock-in. Whether there will be a severe crash like in March, or whether the market can rebound soon, it depends on how decisively the government and the central bank will Lock it down. Respond to the second wave of infections, which further restricts people’s daily lives,”

The euro fell against most major currencies, down 0.3% against the dollar and 0.4% against the yen.

In Asia, stocks bucked the trend and fell, with the Shanghai Composite Index rising 0.5%, KOSPI rising 0.4%, and Nikkei falling 0.3%.

At the same time, Bitcoin continued to rise rapidly to $14,000, the highest level since January 2018, and this month’s earnings rose to 26%.

Brent crude oil futures fell 3% to US$40.37 per barrel, while WTI fell 3.7% to US$38.90 per barrel, and energy stocks as a whole fell. As Europe enters the winter, heating oil futures generally performed strongly, falling 2.7%.

read more: In the past five years, Nancy Zevenbergen has outperformed 99% of investors. She shared 5 secrets of creating a successful growth fund-including those adopted by Wall Street giants Warren Buffett and Cathie Wood.


Source link