Stock market news: Worse consumer sentiment and poor stock market sentiment.

28.09.2022 12:25|Conotoxia Ltd Analyst Team

Stock index contracts are falling today as consumer sentiment declines. This time it's consumers from Europe's largest economy, Germany, where a record of pessimism has been set.

Sentiment in Germany vs. DAX quotes

Germany's GfK consumer climate index fell to -42.5 in October 2022 from -36.8 the previous month, reaching a new record low. This is the fourth consecutive decline, which was worse than market forecasts had predicted. The latest reading highlighted growing concerns over rising inflation and high energy prices, as well as persistent fears of recession, with income expectations falling to a new record low (down 22.4 points to -67.7), according to data released by GfK Group. Economic expectations also fell 4.3 points to -21.9, reaching their lowest level since May 2009.

Meanwhile, willingness to buy fell 2.8 points to -19.5, the lowest level since October 2008, marking the eighth consecutive month of declines. "The current very high inflation rate of almost eight percent is leading to large losses in real income among consumers, and thus a significant reduction in purchasing power," - Rolf Bürkl, GfK consumer expert, said.

stock exchange news: dax quotations

Source: Conotoxia MT5, DE40, H4

With sentiment weakening, but also with increasing chances of further interest rate hikes whether in the United States or the Eurozone, as well as a perceived energy crisis looming this winter, the German DAX index's stock price has set new local lows. At 10:19 GMT+3, the DE40 was down 1.15 percent and at its lowest level since November 2020. That's when the markets were hit by the autumn wave of the covid outbreak, and moments later a new upward wave followed with news of a successful vaccine. Then the bottom was established in the 11500 point area, and it seems that it could be a potential support for DE40.

London Stock Exchange quotes

It is impossible not to mention the UK stock market, which seemed to defend itself from declines for a long time. Now, however, the FTSE100 index, too, may be heading south. The UK100 instrument on the Conotoxia MT5 platform is down 1 percent to 6898 points as of 10:23 GMT+3. This week, Britain's main index hit its lowest level since March 2022.

london stock exchange quotations

Source: Conotoxia MT5, UK100, W1

The London Stock Exchange appears to be under pressure from lingering concerns about the country's economic outlook, exacerbated by a lack of commitment to fiscal discipline. The budget plan of the UK's new finance minister Kwasi Kwarteng, which includes historic tax cuts and a massive increase in debt, has been met with strong opposition from the International Monetary Fund and the Moody's rating agency. If it is implemented, it is possible that the UK could experience a rating cut.

Did you know that CFDs allow you to trade on both falling and rising prices?

Derivatives make it possible to open buy and sell positions and thus trade on both rising and falling quotes. At Conotoxia, you can choose from CFDs and DMA CFDs on more than 4,000 shares of companies listed on stock exchanges from all over the world. To find a CFD or DMA CFD on a stock, all you need to do is follow 4 simple steps:

  1. To access Trading Universe - a state-of-the-art hub of financial, information, investment and social products and services with a single Smart account, register here.
  2. Click "Platforms" in the "Invest&Forex" section.
    Choose one of the accounts: demo or live
  3. On the MT5 platform, search for the CFD action you are looking for and drag it into the chart window.
  4. Use the one-click trading option or open a new order with the right mouse button.

Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Conotoxia investment service)

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.

 

 
 

Like the article?
Share it with friends!


See also:

Sept 27, 2022 3:56 pm

Bitcoin quotes above $20,000 despite recent market turmoil

Sept 27, 2022 10:59 am

Financial markets are trying to catch their breath. What's next for the GBP?

Sept 26, 2022 4:11 pm

Stock market news: the stock market is falling with increasingly gloomy forecasts

Sept 26, 2022 11:26 am

The pound is sinking - a consequence of fiscal easing

Sept 23, 2022 4:42 pm

Bloody Friday in global markets - today's stock market declines

Sept 23, 2022 9:58 am

Yen to USD outlook after currency intervention

76.23% 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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.23% 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.
Trading on CFDs is provided by Conotoxia Ltd. (CySEC no.336/17), which has the right to use the Conotoxia trademark.