Nervous stock exchanges: The fear of the second wave

Also the best Sprinter's run out of steam eventually, especially after a particularly steep climb. In the weeks after the stock market Crash in March of this y

Nervous stock exchanges: The fear of the second wave

Also the best Sprinter's run out of steam eventually, especially after a particularly steep climb. In the weeks after the stock market Crash in March of this year, the shares were diving markets in a rapid speed to higher and higher rates, and left many observers in awe. Finally, the comeback of the market, it was not on fundamental data support.

Antonia man hamlet

editor in the economy.

F. A. Z. Twitter

Instead, hundreds of thousands Dead as a result of the Coronavirus, millions of unemployed and the collapse of the world economy. And the markets? In America, one of the of the Virus in hardest-hit countries, made it the benchmark index, the S&P 500 in the past week, his whole, this year, suffered losses to regain. Also, the German stock index Dax moved away faster and further from its low point in March.

But the seemingly unstoppable Rally has stopped abruptly. Since last Thursday, the indices lost in America up to 7 percent, and the Dax fell by more than 5 percent to 11.853 points, and again under the mark of 12,000 points. In Asia, both the Japanese index, the Nikkei, as well as the CSI 300, which tracks the price performance of the 300 largest and most actively traded shares on the two stock exchanges of mainland China, in Shanghai and Shenzhen issued since last Thursday to more than 6 and 2 percent. Also in the week's kick-off, the markets are not yet come back to the breath. The stock market is recovering but not V-shaped but W-shaped, and as it comes to the longest series of losses since March?

Dow Jones Dow Jones -- -- (--) DOW JONES INDIZESCitigroupBNP Paribas 1T 1W 3M 1J 3J 5J To a detail view of the DAX ® -- -- (--) CitigroupBNP Paribas Xetra lang & Schwarz 1T 1W 3M 1J 3J 5J For detail view

A major reason for the setback is likely to be the rising infection numbers in America, Japan and China, the investors ' votes, nervous. Concern of the new infections in the American sun belt, which includes the States of Texas, Florida and Arizona. In Japan, the number of new infections are among is now two days in a row with more than 40. Currently, all but exactly to China, says Thomas Meier, a portfolio Manager at Mainfirst. "When we see in China, it comes to a second shaft, the device, out of control, it would be a very negative sign." In the people's Republic in the past week to a new outbreak of Covid-19 wholesale market, in which dozens got infected.

Exaggeration up and down

the indices in the last few weeks, grew so strong, but also to the fact that the market has corrected to a certain extent, says Thomas Lehr, capital market strategist, Flossbach von Storch. The extreme downward movement in March was an Exaggeration to the bottom, as well as the subsequent recovery an Exaggeration to the top. He draws the comparison to a bouncy ball that jumps on the second impact, almost as high as the first Time, but always lower. The market didn't found his center yet – will do this but still.

S&P 500 -- -- (--) S&P INDIZESCitigroupBNP Paribas 1T 1W 3M 1J 3J 5J To the detailed view of the NIKKEI -- -- (--) TOKYO SECitigroupBNP Paribas 3M 1J 3J 5J For detail view

says in Addition, many investors are driven currently Pro-cyclical and "toughen" the course of developments, Meier. The primary mechanical investment strategies, so the Algorithms. In America, these are now behind nine out of ten Orders, says the teaching. Since it is less about Macro-data, the adjusted also the view in the rear view mirror. Whether or not a "Trade" macro is not economically sensible, games for many Algorithms, only a minor role. Instead, they searched for Patterns In a market in which a majority of the investors oriented on the price development, acting, moreover, not infrequently the "most rational", and anticipate the irrational Act of a majority of as early as possible. Movements dynamized then, in a sense, by himself, so teaching.

Updated Date: 15 June 2020, 16:20

You need to login to comment.

Please register or login.

RELATED NEWS