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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Create account Try a 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: xStation
