Once again, Friday was marked by a great aversion to risk. The focus of the day was the uncertainty surrounding the coronavirus. The good data that came out regarding the American labor market had little impact in reducing this negative feeling in the markets.
As a result, what happened was that the main world stock markets suffered sharp declines. In particular, the Stoxx600 index closed on losing 3.86%, taking the minimum value of August 2019. On the other side of the Atlantic, the Dow Jones index decreased by 4.61% while the S&P 500 declined by 4.90% and the technological Nasdaq depreciated by 4.82%.
In the debt market, as is typical on a day of risk aversion, interest rates on European government bonds dropped significantly. On the other side of the Atlantic, the 30- year US treasury debt continues to pass the barrier below 1%.
With the significant higher sell-off of the Dollar when compared to the European currency, the Euro ended up appreciating by 1.24%.
Oil has been falling very abruptly, having depreciated by 8% on Friday. The reason for this decline is the lack of agreement between OPEC and Russia regarding the reduction in the level of supply.
Gold, on the other hand, had a mixed behavior, having fallen 0.14% despite the greater aversion to risk. Losses in the stock market, as well as the need to face margin calls, put pressure on sale of this metal.
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.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2022 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.