Indicators against the stock market sentiment

Published on: 29-Jun-2020
Category: Trading
Last updated: 29-Jun-2020

Indicators against the stock market sentiment

First came the crisis, then a brief glimmer of hope for the recovery of the economy and now the origin of the crisis seems to be returning. The fear of a second wave of infection of the corona virus is reflected in the stock market prices. In the US, new record numbers of cases are broken and the government around President Donald Trump doesn't seem as worried as the country's citizens. The last trading week was therefore not pleasantly ended on the major stock exchanges. Wall Street once again serves as an indirect indicator of the mood on the stock exchanges. The leading Dow Jones index has declined sharply since the middle of last week and has come very close to the 25,000 point mark again. The index declined 2.84 percent. With a loss of 2.59 percent, the tech index Nasdaq Composite clearly distanced itself from its gains during the corona crisis on Friday. And the broad-based S&P 500 also fell 2.42 percent.

Wall Street's negative numbers are countered by real-time indicators from the United States. As before, they still indicate a recovery in the economy. The Federal Reserve Bank of New York's Weekly Economic Index recently rose to minus 7.7 percent. The index is based on the country's GDP and also contains current figures on the labor market, production and consumer behavior. The increase is the largest since April. The relationship between consumer discretionary and consumer staples is also an important indicator of the US economy and is currently at its annual high.

In Germany, the DAX started the new trading week with strong fluctuations. At the moment it is 12145 points up 0.43 percent, but today it was 50 points above and over 100 points below. On the other international stock exchanges, as in the USA, there is cautious to fearful behavior on the part of investors. In Japan, the leading index lost 2.3 percent on the first trading day of the week, and in South Korea the leading index fell 1.93 percent. In Hong Kong, the Hang Seng Index is down 1 percent from trading. In China, the two major indices give different signals.


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