- U.S. Stock futures stabilized, pointing to further losses above Wall Street, while in Europe, the Stocks 50 index of top eurozone stocks fell to a four-month low.
- Rising cases in France could lead to another national lockdown, hitting the euro, oil prices and especially French banking stocks.
- “Markets have already begun to value more lockdowns – partial or full issues,” said Milan Katkovich, a market analyst at Axis.
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Global stocks caught fire on Wednesday as investors fled risky assets following the imposition of further lockdown sanctions at the center of the eurozone economy, which sent European equities to a four-month low and provided demand for safe-haven government bonds.
Next week’s U.S. The risk involved in the run-up to the presidential election was a source of panic, as Kovid-19’s U.S. The record growth in cases reached uncertainty about the prospect for a closer race than the White House expected.
U.S. Stock futures fell between 0.9 and 1.6%, which will point to another subsequent decline on Wall Street, while investors will have to pick up a lot of earnings from Boeing, Visa, MasterCard and Etc. The 10-year-old U.S. Yields on the treasury reached their lowest level in a week, reflecting investors’ demand for safe-haven assets.
The Stocks 50 index of top euro zone stocks fell 3.3% to its lowest level since the end of May and is set for its biggest one-day drop in a month. The index has now lost about 7% in October, the highest in a month since March.
Every major sector in the equity sector was red, with banks and oil and gas indices suffering the most losses below 8.8 and 4.4%, respectively.
With the threat of further damage to the economy due to the coronavirus epidemic, oil prices fell by about 4 percent and investors turned to the relative safety of the US dollar, and the dollar dollar index was sent up 0.4%.
“It is not surprising to see economic fears around Europe with rumors of a nationwide lockdown by Germany and France. Meanwhile, with US elections next week, there are many reasons for hesitation among traders,” said Joshua Mahoney, an analyst at IG Markets.
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Bank stocks are the most vulnerable to the flow and flow of investor confidence in the economy and many heavyweight financial stocks in the sector are on fire. Investors reduced Natixis, Credit Agrol, BNP Paribas and Society General to 6-7%, reserving their toughest penalties for French banks.
France could enter a second national lockdown this week, according to the French daily Liberation, which has asked President Emmanuel Macron to address the country on Wednesday evening over the alleged cases of COVD-19.
VDAX-New, which reflects investors’ risk appetite, is at its highest level since the end of June, up about 13%. The ten-year German bond yield fell by a basis point to -0.363636%, the lowest level since the thrush of the coronavirus market crisis in early March. French bond yields remained unchanged at -0.33%.
“Markets have already started costing more lockdowns – partial or full issues. As seen in March, it will crash dramatically depending on how quickly and decisively the government and central banks decide whether markets are able to bounce back soon. Will depend. Reacts to another wave of infection, which further restricts everyday life, “he said.
The euro lost 0.3% against the major currencies and 0.4% against the yen, depreciating against most major currencies.
In Asia, trends in equities remained low, with Shanghai Composite up 0.5% and KOSPI up 0.4%, while the Nikkei down 0.3%.
Meanwhile, Bitcoin continued its weather rise towards 14,000, surpassing its post-January 2018 high and bringing the gain to 26% this month.
Brent crude futures fell 3% to .3 40.37 a barrel, while WTI fell 3.7% to. 38.90 a barrel and the entire energy complex fell. Heating oil futures, which are usually strong outperformers as Europe enters the winter season, are down 2.7%.
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