Psychology is a decisive factor for the stock markets. This is especially true for the current situation with the coronavirus. What is currently happening in China is a strange constellation: the largest wave of population movements in the world (400 million Chinese travel to the New Year) plus increased globalization are causing the spread of a virus with previously unknown consequences. If, for example, the virus were to occur more in western countries, this would have a significant impact on consumption. Although the probability of being killed in a traffic accident is probably higher than dying from the Coronavrius. Nobody would give up their car for this reason! The stock markets are recovering after the WHO did not issue a global virus warning. But over the weekend a sharp rise in Coronavius infections in China is expected.
The ZEW Index (January; economic expectations) turned out better than expected at 26.7 (forecast was +15.0; previous month was 10.7). The assessment of the current situation is -9.5 (forecast was -13.5; previous month was -19.9). […]
The Trump administration has thrown the stock markets into turmoil tonight. It has shown that the markets themselves and the alleged trade deal with China are a pure charade. Donald Trump is thus pursuing two […]
What is the greatest risk for the stock markets in the short term? What has already been priced in tonight on the Asian stock markets and US futures with major losses: namely the spillover of […]