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.
Source: 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%.
Disclaimer: The given data provides additional information regarding all analysis, estimates, prognosis, forecasts or other similar assessments or information (hereinafter "Analysis") ...
more
Comments
