Stock Market Analysis Today
Stock Market Analysis Today: European equities are under strong pressure this morning as reality has caught up with the markets.
It was only a matter of time before investors are no longer able to ignore the sharp increase in new COVID-19 cases and new restrictions being introduced throughout Europe.
So far it has mainly been the hope for new stimulus measures that has kept the optimism alive.
On Wall Street, however, investors have now accepted that there will be no deal between the Republicans and Democrats over the stimulus package in the imminent future.
Another lockdown in Europe seemed unlikely until recently. With the arrival of the second wave, this cannot be ruled out anymore.
Though governments are trying their best to avoid another economic standstill, but as the situation is escalating again, pressure on them to take swift action is increasing.
There is a risk that restrictions are only introduced gradually but lead to the same end result.
Investors can only hope that financial markets will soon receive another lifeline from central banks and governments. Otherwise, the impressive stock market recovery could end abruptly.
Stock Market Analysis Today: European equities are under strong pressure this morning