June 1, 2023

South Sudan News Agency

Complete English News World

Stock markets are on a sell-off, the market is bleeding

Across the continent, the STOXX 600 index has fallen for the fifth day in a row, so with today’s 1.7 percent fall, the index has reached the level seen since late December 2020. Meanwhile, a German DAX index, one of the most watched by investors, fell 2 percent, pulling further away from the previous long-term support of 12,500 points – with the RSI retracing this level below 30. On the cards anyway.

If you look at the bigger picture, you can see rough patches across Europe.

All sectoral indices of the STOXX 600 fell, with the economy’s oil and gas, raw materials, retail and banking sectors falling the most.

The Hungarian stock market was no exception to the selloff, with blue chips with the biggest index weights (OTP, Mol, Richter) all showing falls of 2 percent or more.

As for U.S. stock markets, futures for the three leading indexes fell between 0.9 and 1.6 percent. Based on this, the S&P 500 could open near 3,618 points, below key support of 3,650 points.

Why does everything break?

According to Germany, Denmark and Sweden, the bad mood is partly due to geopolitical tensions, as the two Nord Stream pipelines at the heart of the energy standoff are under attack. According to media reports, the EU is threatening “strong and coordinated responses” to possible attacks on the pipeline.

The damage to infrastructure is pushing tensions between the West and Russia toward a stalemate and dashing hopes for a quick breakthrough in the geopolitical and energy sectors.

– said Ipek Ozkardeskaya, senior analyst at Swisscote Bank.

Reflects a bleak economic outlook, according to a survey German consumer confidence fell to record low in OctoberHigh inflation rates and skyrocketing energy bills show no signs of abating.

Meanwhile, overseas, tech stocks came under pressure as the yield on the benchmark 10-year US Treasury rose above 4 percent, a 12-year low, amid fears the central bank may have to fight back, one of the main reasons for the decline. Inflation by 4.5 would require you to raise interest rates by more than 1 percent.

Finally, it should also be mentioned A significant company news was released recently, according to which Apple, the world’s largest company by market value, has told its suppliers that it is withdrawing from plans to ramp up production of new iPhones this year. Apple expects a 3.7 percent drop in today’s US market launch.

Cover image: Getty Images

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