Spreadex Market Update

Market losses accelerate as now signs of cure for investors’ coronavirus fears



The rebounding confidence seen last Friday was long gone this Monday, the markets seriously struggling as fears surrounding the coronavirus outbreak intensified.

From a bad start the European indices only got worse as the session went on, dealt an extra blow by a lower than forecast German Ifo business climate reading, one that served to undermine hopes of an economic turnaround in the country.

With Brent Crude down 2.2% and copper sliding 2.6%, the commodity-rich FTSE had absolutely no chance. The UK index dropped 2.3%, rapidly sinking towards 7400, a level last seen exactly 6 weeks ago.

It was small comfort for the FTSE that it wasn’t alone. The DAX dropped 335 points, abandoning last week’s flirtation with all-time highs in favour of a 2 and a half week low of 13230. The CAC, meanwhile, slipped 2.5%, the French bourse dragged back under 5900.

On the surface it looked like the Dow Jones managed to avoid the kind of losses seen in Europe, instead falling a comparatively tame 1.4%. However, that 400-point plunge comes following the Dow’s late dive last Friday, after the European indices had locked up shop for the weekend.

The US index is now sitting the wrong side of 28600, that fortnight-plus nadir coming at the start of a week that sees Apple’s Q1 earnings, the latest statement from the Fed and the first glimpse at the USA’s Q4 GDP.

And that’s not all. Prior to the outbreak this week would have been notable for Mark Carney’s final meeting as Bank of England governor – an outing that could see the MPC cut interest rates – alongside the UK’s long-trailed withdrawal from the EU.

Instead it looks like those major macro events may end up as background noise to the market-tanking concerns surrounding the virus, and the potential impact it will have on the Chinese – and therefore global – economy.

SEARCH FOR AN ARTICLE:

Enter a keyword and search for all relevant articles

MARKET ANALYSIS

RECENT POSTS

Financial Trading Blog

Gold Wobbles Ahead of Global PMIs

Read More

Daily Market Update

22.04.26 Wednesday Morning

The S&P 500 closed lower on Tuesday as doubts over the Iran ceasefire weighed on sentiment, while the US dollar...

Read More

Economic Diary

22.04.26

Read More

Financial Trading Blog

FTSE 100 Under Pressure From Oil Ahead of CPI, Sainsbury's Earnings

Read More

Economic Diary

21.04.26

Read More

Weekly Technical Analysis

Weekly Technical Analysis

Read More

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.

The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.