Omicron and uncertainty related to its impact on health and economy remains a source of concern. There still seems to be no consensus among scientists on whether current vaccines protect against this variant of coronavirus or not. While some countries in Europe has started to tighten restrictions in order to combat spread of a new variant, the Netherlands went a step further and imposed a full nationwide lockdown.
Dutch Prime Minister Rutte announced that non-essential shops, restaurants and bars will be closed starting from Sunday, December 19 until Friday, January 14. Schools and universities will remain closed until Sunday, January 9. Households will be allowed to host only 2 visitors during lockdown with the limit increased to 4 for Christmas and New Year's Eve. There is a risk that such a move from the Dutch authorities will encourage other European leaders to follow. However, German and UK authorities have already ruled out imposing a lockdown for Christmas.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appNevertheless, there is a feeling of nervousness in the markets. Major European stock market indices plunged at the beginning of a new week. However, it should be said that delay to US infrastructure bill talks is also playing a role here. Taking a look at the Dutch AEX (NED25), we can see that the index launched today's trading with a big bearish price gap. Price tested short-term support zone ranging between 750.00 handle and 23.6% retracement of the upward impulse launched after 2020 US presidential elections.The area is also strengthened by the 200-session moving average (purple line). From a technical point of view, outlook is somewhat bearish after the index dropped below the lower limit of the market geometry. The next support zone to watch can be found near the 38.2% retracement (713.00 area).
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
