After a more than extensive rally, the stock market took a breather this week, while a new containment in Austria (and compulsory vaccination for all!) And the prospect of a similar action in Germany made the equity indices unscrew. . Across the Rhine, the Minister of Health, Jens Spahn, hinted today that nothing could be excluded and that there was a national emergency. “The situation is not as bad in other countries like France, Italy and Spain, but that could change in the coming weeks, as we saw last year around the same time . The high vaccination rates mean that the link between the number of cases and deaths is much weaker, but the former is increasing at a remarkable rate, which makes the situation difficult to ignore ”, emphasizes Craig Erlam, market analyst at Oanda. .
The specter of containment has caused a drop in oil prices. There is indeed “an obvious risk if other countries follow Austria’s example. A move below $ 80 could worsen the correction, and possibly push the price back towards the $ 70 region. It seems more likely now than a day ago, and if Germany announces similar measures, it could be the catalyst for such a move ”, warns the expert. Unexpected headwinds for black gold, which are added to that of a forecast of global demand already revised downwards by OPEC recently. The latter and the IEA had warned of oversupply in the coming months, while the United States tried to coordinate a release of oil reserves with China and other countries, which weighed on Brent and WTI barrel prices…
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Momentum’s caution on the stock market and cryptocurrencies (Bitcoin, Ethereum) paid off this week, further gains made
Subscribers to Momentum, Capital’s premium newsletter on the stock market and cryptocurrencies, were generally able to turn their backs on the equity markets (for the time being still limited) having been correctly anticipated, with good timing. Momentum delivered its expectations on the CAC 40, the Nasdaq, the S&P 500, the Nikkei 225, on numerous stocks (Orange, Hermès, Valeo, Faurecia, Airbus, Kering, Sanofi, Boeing, Aurora Cannabis, etc.), oil, the main precious metals (gold, silver, platinum) and major cryptocurrencies (Bitcoin, Ethereum, Crypto 10 index), on the rise, as well as on the fall!
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Among the disappointments, actions sensitive to anti-Covid-19 restrictions (aeronautics …) – and oil – suffered, while Aurora Cannabis retreated more than expected. In terms of reasons for satisfaction, our overall cautious approach – both on the equity markets and on cryptocurrencies – has paid off, while our subscribers have been able to cash in their rapid gains on automotive stocks (Faurecia, Valeo, etc.) at the highest, just before the fall.
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