Will the corona break-in be repeated?

The optimism on the stock markets that was still evident in September has now completely disappeared. Rather, one day loss after another makes the rounds and creates a bad mood among investors. But the factors influencing the current decline were actually known and currently seem to be significantly overweighted again. The question remains whether this is justified or not.

Fear of lockdown!

Although an increase in the number of people infected with corona was expected in the winter months, the exchange – as it did in February – reacts to the data with a slight delay. However, the question arises as to whether the reaction of the past few days was a bit exaggerated. In any case, the DAX currently seems to be at a crossroads. Finally, from a technical point of view, a further decline would trigger a clear trend reversal, which should then result in further price drops. Conversely, if there is any positive news about the progress made in obtaining a vaccine, it should provide positive momentum in the equity market. But it is not just this topic that makes trading on the markets particularly exciting at the moment.

Decision in the coming week – right?

In addition to the current Corona data and the associated expectations and fears, the US presidential election is getting closer and closer. So we can look forward to the result next Tuesday. For the stock exchange, a clear, unambiguous performance would initially be a signal of relaxation for one of the two counterparties. After all, there would be one less uncertainty factor. If, for example, challenger Joe Biden were to win by a narrow majority in some key states, the incumbent president is likely to contest his defeat. At least he had announced this in advance. The consequence, however, will be further uncertainty that will drag on over the coming weeks. Not a good environment for rising stock prices! However, the stock market is currently pricing in a lot of negative things. Should there actually be initial lightening here and there, the direction should quickly turn upwards again. It is therefore advisable to act very carefully and cautiously in the coming days, but to keep the markets in focus all the more closely.

I wish you a successful stock market week

Stephan Feuerstein
Leverage Certificate Traders

Note: PERSONAL-FINANCIAL.COM publishes analyzes, columns and news from various sources in this section. PERSONAL-FINANCIAL.COM AG is not responsible for content that is recognizable as being posted by third parties in the “News” area of ​​this website and does not adopt it as its own. This content can be identified in particular by a corresponding “from” label below the article heading and / or by the link “To read the full article, please click here.”; The named third party is solely responsible for this content.


Related Articles

Back to top button