On Thursday, it started in Asia: The major stock indexes were all in the Minus. In the United States, it came on Thursday a veritable carnage and Panic selling. In Switzerland, the bad mood continues. After the Swiss Market Index (SMI) lost yesterday a lot of ground, he opened today in the Minus: The SMI decreases of 1.0 percent and drops to 9734 points.
the bad mood of a gloomy economic assessment was Triggered by the US Central Bank, the Fed, and the fear of a second Corona-shaft. The US leading index Dow Jones Industrial broke on Thursday of 6.90 percent. With 25’of 128 points, he found himself on the same level as of the end of may. This was the largest percentage daily loss based on the closing price for the black week in March. In the meantime, the Dow would have dropped almost below the mark of 25’000 points. For the broad market S&P 500 at the end by 5.89 per cent to 3002 points down.
New Lockdown in America, expected
Fed Chairman Jerome Powell (67) had already found middle of the week due to the severe economic crisis as a result of the Corona pandemic in clear words. He said that a significant part of the job losses could be permanent. Added to this were the new infection numbers: In some southern US States like Florida and Texas increased new infections again. “We expect the re-introduction of some Corona-restrictions in some cities or States in the coming weeks,” said the British analysis house of the Pantheon.
In this environment, many investors continued to cash in. So, the Dow had climbed to the start of the week with 27’580 points, the highest level since the end of February. This was an increase of more than 50 percent since the Corona-crash low in March. Not a few traders had already spoken of an Overheating of the market because of the cheap flood of money by the Central banks, which have nothing to do with the real economy prospects.
The tech values-Laden Nasdaq 100 was even increased to a record high and a buckled now amounted to 5.01% to 9588 points. The Powell-Statements seem to have the investors, now in the reality brought back. (nim/SDA)
