Rising COVID-19 cases worsen risk sentiment, stock indices impacted - Market Overview

Rising COVID-19 cases worsen risk sentiment, stock indices impacted - Market Overview

Market risk sentiment worsens slightly due to the increase in infections worldwide, especially in India, where the situation seems to be out of control.

The administration of vaccines in the West continues at a good pace. However, both in Europe and in the United States, the infection figures remain worrying, and mobility restriction measures have not yet been lifted in Europe.

U.S. stock markets

Yesterday the American stock indices suffered a significant fall, leading to a movement that for now can be considered as merely corrective from a technical perspective. However, there appears to be no fundamental reason, other than that derived from the evolution of infections, that could generate a greater correction.

Asian stock markets.

In Asia, the stock markets suffered bigger falls yesterday, as is the case with the Hang Seng index, which accumulated losses of three consecutive days (around 2.5%).

This index is again in a pivot zone around 28328. If it falls below this level, losses could accelerate to around 27,000. The 28328 area appears to be important, too, since the 100-day SMA line passes through there, currently acting as support.

European stock markets.

The European stock markets have also suffered corrections. Germany30 fell around 2.5% in the last three days.

In this case, concerns regarding Germany’s lockdown measures implemented and the high incidence of cases could be perceived as significant enough reasons to lead investors to involve in profit-taking. On the other hand, the delay in implementing the European fiscal stimulus package approved months ago could be an additional cause for concern, potentially delaying the recovery of the European economy.

Technically, the German index is still far from support zones or pivot points where the current trend would normally reverse. The two main technical support areas are at 14793 and 14429, still a long way from the 100-day SMA line currently passing through 14098. The RSI indicator is correcting from overbought levels, so it could still have enough room for correction.

Tomorrow's ECB meeting will not provide any additional elements that could affect the markets. No change is expected either in its monetary policy instruments or in its discourse, which will remain in the same direction as the previous ones.

Sources: investing.com, reuters.com.

Maklumat/penyelidikan ini disediakan oleh Miguel Ruiz (“tpenganalisis penyelidikan”) dan tidak mengambil kira objektif pelaburan tertentu, keadaan kewangan atau keperluan khusus individu. Penganalisis penyelidikan bertanggungjawab terhadap kandungan laporan penyelidikan ini, samada sebahagian atau keseluruhannya, memperakui bahawa pandangan mengenai syarikat dan sekuriti mereka yang dinyatakan dalam laporan ini jelas mencerminkan pandangan peribadi dan pedagang bertanggungjawab sepenuhnya ke atas risiko mereka sendiri.

Penyelidikan yang disediakan bukanlah pandangan JME Financial Services (Pty) Ltd ataupun undangan untuk melabur dengan JME Financial Services (Pty) Ltd. Penganalisis penyelidikan juga memperakui bahawa tiada sebahagian daripada pampasannya, adalah, atau akan, secara langsung atau tidak langsung, berkaitan dengan cadangan atau pandangan tertentu yang dinyatakan dalam laporan ini.

Sehingga tarikh laporan diterbitkan, penganalisis penyelidikan dan pasangannya dan/atau saudara-mara yang bergantung kepada penganalisis penyelidikan, tidak memegang kepentingan dalam sekuriti yang dicadangkan dalam laporan ini (“kepentingan” termasuk pemilikan langsung atau tidak langsung terhadap sekuriti).

Penganalisis penyelidikan tersebut bukanlah di bawah JME Financial Services (Pty) Ltd. Anda digalakkan mendapatkan nasihat daripada penasihat kewangan bebas mengenai kesesuaian pelaburan, di bawah penglibatan berasingan, seperti yang anda anggap sesuai dengan objektif pelaburan tertentu anda, keadaan kewangan atau keperluan kewangan tertentu sebelum membuat komitmen untuk melabur.

Undang-undang Republik Afrika Selatan akan mengawal sebarang tuntutan yang berkaitan dengan atau yang timbul daripada kandungan maklumat/ penyelidikan yang disediakan.

JME Financial Services (Pty) Ltd, beroperasi sebagai ZA.CAPEX.COM, bertindak sebagai perantara antara pelabur dan Magnasale Trading Ltd, rakan kontrak untuk perbezaan yang dibeli oleh pelabur melalui ZA.CAPEX.COM, yang diberi kuasa dan dikawal selia oleh Cyprus Securities. dan Suruhanjaya Pertukaran dengan nombor lesen 264/15. Magnasale Trading Ltd adalah prinsip utama CFD yang dibeli oleh pelabur.