Worries prevailed in the markets and dragged particularly German stocks lower.
Italian budget worries linger on as the confrontation with EU is approaching
Italian politicians believe they can play with markets, which backfires
German political volatility is unsettling
US interest rates at over 3% rattle the markets
Flatt yield curve seen as harbinger of the next recession
China still unresolved trade conflict
New tensions with Saudi Arabia which could potentially lead to higher oil prices
German ZEW expectation index is falling, indicating investors worry
All this lead finally to the equity markets in Germany falling thorough resistance and finalising a head and shoulder formation
DAX index weekly Price
A rally above last week’s heights could bring some relieve. However the structure of the market is badly damaged which usually take more than just technical rebounds.
Investor sentiment on both sides of the Atlantic is really weak
Investors’ expectations of economic deterioration as polled by Bank of America Merrill Lynch is at 2008 highs
Good corporate numbers are disregarded by the stock markets
Stable economic numbers not supportive
Just realised that I can add more negative than positive. This is amazing and scary.
At the moment the old saying comes back: markets climb the wall of worries.
However, it is also very difficult to “cry wolf” in the face of the market Action.