European indices plunge amid growing risk of recession
Flash PMIs from European countries for September showed a major deterioration, especially in Germany and in the French services sector. Moods among German entrepreneurs have not been so bad since the beginning of Covid pandemic. As a result, DE30 plunged through the 12,400-12,500 pts support zone. It should be noted that this was the fourth attempt of breaking below this zone recently and unless index climbs back above it today, the next week may see continuation of the downward move.
It should also be noted that DE30 reached the lowest level since November 2020 and is approaching a 50% retracement of the post-pandemic recovery move. While European energy prices are holding stable today, they are already high enough to threaten survival of a number of companies. DAX is trading 2.5% lower at press time.
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Strong pick-up in yields in Europe and US as well as high energy prices are pushing stock market indices lower today. Source: xStation5
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