A lot of volatility on the major stock indices
Despite the lack of significant macroeconomic data, we could observe increased volatility in the stock market today.
The IFO reading from Germany turned out to be worse than expected, which caused declines in the stock markets in Europe. Nevertheless, the headlines regarding the coronavirus should also be blamed for today's sell-off. Merck has announced that it has discontinued development of its own vaccine, and Moderna confirmed that its vaccine produces less immune response to the new COVID-19 strain.
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Open account Try demo Download mobile app Download mobile appWhile in Europe for most of the day sellers had a clear advantage, in the US the session looks different. The day started here with strong gains and both Nasdaq and Russell 2000 reached new all-time highs. Later in the session one could witness a sudden twist and sharp decline. Nevertheless, in the evening hours the demand recovers again, which means that US indices have a chance to erase recent losses by the end of the day. The Nasdaq is already trading 0.4% higher. However, US indices show a certain nervousness which, if it persists, may lead to a deeper correction in the near future.
US100 - after reaching a new record index pulled back rapidly among profit taking. Nevertheless, the main trend remains bullish. As long as we observe a sequence of higher highs and lows, there is no sign of a downturn. The nearest support lies at 13,100 pts level. Source: xStationThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.