Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Alexander Kuptsikevich

The pressure on the stock markets is growing. It is dangerous that at once the pressure comes from several regions, causing fears that the period of synchronous growth last year may be followed by a period of synchronous braking. Pockets of fears are located in the USA, Europe, and Asia.

In the U.S., the pressure on markets is due to a concern that the Fed takes too hawkish position while the latest data indicates a possible failure in a series of strong outcomes. It is not a reason to panic for the markets, and the sale of American stocks at this stage is very measured. Investors record the profits by selling the shares of High-tech companies that grew faster than the others in previous quarters. In addition, the shares of the construction sector companies, which have stalled in recent months, are declining. It is noteworthy that since last Thursday there has been a similar character of S&P500 dynamics: the stocks have been sold abundantly at the very beginning of the American session and have partially taken back the decline at the end of the Day. This is similar to the fixation of profits by large players. Although the decline is measured, S&P500 had lost 2% from October 3 peak levels by now. The USDJPY, serving as a demand indicator for risks, had lost 1.5% during the same time, having reversed down from the area of important resistance at 114.50.


In Europe, the populist Italian government remains in the spotlight on the backdrop of a skirmish with the bureaucrats from Brussels. EU officials require that the country better satisfied the Union’s standards, and the high officials of Italy call Brussels “enemies” in response. All this results in the weakening of the Italy markets and presses on the single currency. The index of the Milan stock Exchange has updated 16-month lows, and the yield of the 10-year bonds has jumped to the highest levels since January 2014. The EURUSD had sunk to 1.1460 (lows since August 20) but later bounced back to area 1.1500, where it is currently trading.

Suggested Articles

In China, the pressure on stock markets remains because of the fears around the trade wars consequences following the statements by U.S. representatives on “fundamental contradictions” in views with China. The pressure on the Chinese currency continues to increase, and the PBC allows the yuan to fall below the mark of 6.9 per dollar. The weakening of the currency will let the export-oriented companies gain a competitive advantage against the backdrop of tariffs from the U.S., but it can also increase the deflationary pressure worldwide in the medium term and suppress the demand for risks in the short-term.

This article was written by FxPro

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.