The EURO STOXX 50, IBEX, EURUSD, corona virus – the Points of discussion
- Risk aversion is once again on COVID-19-related worries
- European stocks weakened alongside the Euro and global equity counterparts
- Also, the Euro-Zone and German GDP data downward, to close the week
The economic outlook for the Euro Area, continues to degrade as COVID-19-related shocks to the economy, seem likely to continue for a longer period than previously thought. The next GDP figures of Germany.and the more encompassing the Euro Zone to cross the wires on Friday, to provide users with more data to digest over the next week-end. For the moment, the European stocks continue to trade lower, with the EU-50 Index is down about 5 percent from Monday’s high.
The Economic Calendar
Source: DailyFX
Increase in risk aversion, it is difficult to isolate from Europe, however. The downward pressure on European equities following losing session for the UNITED statesand the Asian indices on Thursday. The Remarks from u.s. Federal reserve Chairman, and secretary Powell earlier in the day, the acceleration of losses in the vicinity, for the EU-50 index is, as secretary Powell has noted that ” the outlook remains very uncertain in the global economy. Consistent with the more general trend of risk aversion seen in the equitesEUR/USD has weakened the safe haven of the U.S. Dollar is slightly higher following Powell, apprehension toward negative interest rates in the united States.
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EU-50, the Index of Anticipation of
The bears are back in control following last week’s bullish performance of the Euro Stoxx 50 index. Wednesday closed about 1.5 percent lower for the main European indices. The Downward momentum appears to be accelerating, reinforced by the deterioration in risk sentiment seen across global equities, and may continue. However, a surprise, read the upside on GDP figures for Germany or the Euro Zone can help with the voice of the downward pressure.
The Current share price is currently based on a recent are planned until the end of the month of April. However, Wednesday’s action saw a strong rejection at the 38.2% fib retracement, before going further down on Powell’s remarks. The bears may try to take advantage of the overall weakness of the markets and a break of the recent support for the movement, the price action down to April’s low, which coincides near the 23.6% fib level 2619.49.
The EU Stocks 50 (A 4-Hour Chart)
Source: Y-Charts
IBEX 35 index Forecast
In line with the overall feeling across Europe, the IBEX-35 index declined on Thursday, closing the session nearly 2 percent lower. Spain’s market has been lagging behind the head movement, and conversely, has overreacted to the downside, compared to the EU-50 index. Market participants may be placing a heavy weight on a virus-related effects on the Spanish economy, which is moderately dependent on tourism.
The Spanish index started the week with a rejection at the 23.6 fib level and the continuation of the decline, with price action breaking of the under support is set in the last few weeks. When viewing the price action with Bollinger bands superimposed, we can see that the volatility has increased marginally. The 20-period exponential moving average is now declining. This, combined with the price action, something in the bottom of the band may be the signal of a extra drop in the front.
Spain 35 Index, The 4-Hour Chart)
Source: Y-Charts