Home Business News European markets under pressure while Wall Street rallies

European markets under pressure while Wall Street rallies

by LLB Editor
19th Aug 20 11:15 am

European equity markets continue to struggle, according to Milan Cutkovic, Market Analyst at AxiCorp.

In the US, on the other hand, investors are celebrating new record highs -the S&P 500 followed the NASDAQ higher and reached a new all-time high yesterday.

While the party on Wall Street continues, the mood in Europe is rather subdued. The DAX failed once again at the psychologically important 13,000 level and bulls are slowly losing control.

“There are concerns that the recent travel restrictions in Europe are just a taste of what could follow in autumn/winter.

“Renewed restrictions could jeopardize the economic recovery and put a heavy strain on the already damaged consumer and business confidence. European governments and the European Union would also come under pressure to take new economic measures.

“Meanwhile, Gold is extending gains. The precious metal was able to recover relatively quickly from the recent setback and is currently consolidating around the $2000 level.

“A test of the all-time high reached on August 7th seems only a matter of time. The negative outlook for the US Dollar and numerous uncertainties that are weighing on market sentiment should keep the demand for gold at a high level.”

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