After four consecutive days of gains on the European stock exchanges, the trend ended up reversing last Friday, February 7th. One of the main reasons that contributes for this drop is the concern about the coronavirus.
After a few days when the Chinese initiatives prevented the negative effects of the virus and contributed to the gains on the main international markets, now it has prevailed the feeling of uncertainty. The number of cases rose steeply, and industrial production data in Germany fell far short of expectations. Consequently, the main European stock index drop as well as the interest rates on the debt of the main European countries. The euro depreciated 0.17% against the dollar, where good data on the American labor market also ended up putting pressure on the European currency.
The pound sterling, when compared to the euro, was mostly growing in value on Friday with the bad results of German manufacturing. Then it ended up correcting with a greater demand for safer European assets.
Also following the same logic regarding the spread of the coronavirus, the price of crude oil fell for most of the day. The lack of definition regarding the cut in the supply of 600 thousand barrels per day by OPEC and Russia contributed to the fact that the price trend had been falling over the week. A final decision is expected over the course of this week.
Regarding gold, on the other hand, an upward trend could be observed with the rise in demand of investors for safe haven assets.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
© 2000-2023. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.