The German DAX index seems to be down by more than 2 percent on Monday, breaking last week´s low. Oil seems to be falling more than 3 percent. Futures contracts for American indices show more than 1 percent decreases in the USA. Monday promises to be a bearish market day.
The main German stock index DAX has recorded one of the worst start of the session recently after the results of SAP, which is part of the index. SAP stock prices dropped by over 20 percent at the opening. The company recorded disappointing results, with both lower operating revenues and a lower outlook for 2020. As a result of this event, after a drop of more than 2 percent, the German DAX was at its lowest level in three months. Meanwhile, the number of new COVID-19 infections in the entire region continues to be of concern to investors. The number of deaths exceeded 10 thousand in Germany and the number of new COVID-19 cases over the weekend was 25 thousand.
The situation in other European countries is also deteriorating, but the decreases in other stock exchanges are not as large as in Germany after SAP results. France recorded a record daily increase in infections on Sunday, Italy announced several restrictions, including the early closing of bars, the closing of gyms and entertainment venues, and Spain announced a nationwide curfew for 6 months. The French CAC40 is down by 0.6%, the Italian FTSE MIB by 1.3% and the Spanish IBEX by 0.3%.
The situation is also getting more and more complicated on the American stock market, where the main stock indices have started to go back below key support. This morning, DJIA futures fell by nearly 300 points, S&P 500 by about 30 points, and Nasdaq by nearly 100 points. The United States reported over 83 thousand new COVID-19 cases both on Friday and Saturday, which is a new record. Meanwhile, on the political front the new law on assistance before the presidential elections seems unlikely because the democrats and republicans have not yet agreed on a new package and the elections will take place on November 3. The polls are led by Joe Biden, but everything will still depend on the voters' votes.
This week, the quarterly results of the companies will be crucial for the future of the main indices: Apple, Alphabet, Amazon and Facebook. Also key may be the data concerning the preliminary estimate of GDP in the USA in the third quarter, which will be published on Thursday.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trade this news from Conotoxia Ltd. platforms
Go to your account
