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Euro STOXX 50 falls to 3-month low

Euro STOXX 50 – Daily Candlesticks
Source: GKFX / MT4 (September 24, 2020)

ESX50 has been in a well-defined trading range since June. Today it tested the bottom side of the range again near the 3400 round number, potentially setting up another opportunity within the range or for a breakdown.


•    Euro STOXX 50 index falls to 3-month low
•    GBP stabilises after Sunak ’s new UK wage support scheme
•    Gold and silver snap huge 3-day losing streak
•    Bitcoin jumps on news of European cryptocurrency regulation
•    DAY AHEAD: US durable goods, Blackberry earnings



 “The rich invest in time, the poor invest in money.”  - Warren Buffet


Markets started the day in a state of unease triggered by rising coronavirus cases in Europe and by political uncertainty stateside. European markets closed in the red, led lower by the FTSE 100. The comeback came during New York trading hours as tech stocks shook off yesterday’s declines to close green as Amazon announced a series of new hardware devices.

The US dollar snapped a 4-day winning streak, allowing a pause in the sweeping losses across precious metals and other major FX pairs. Sterling got an additional boost after Chancellor Rishi Sunak announced a new in-job wage support scheme.
Cryptocurrencies got a lift by the improved risk sentiment and by the mixed blessing of talk of the first European regulation of the digital currencies. 


European indices almost universally topped out in June, way before the recent top in Wall Street. How far prices have pulled back from that June peak has well represented investor feeling about the prospects for those countries post-pandemic. The Euro STIXX 50 represents the biggest 50 companies in Europe and has remained very stable in a sideways trading range between 3130 and 3400. The price just dipped below support today before stabilising and has not yet confirmed a break lower. 

Amazon hardware is technically part of the ‘consumer discretionary’ sector of the stock market because of its namesake retail shopping website but it of dabbles in many areas within tech. On Thursday the company released a series of new hardware products including new versions of its Echo and Fire TV devices and a brand-new videogame streaming device called Luna. The annoucements gave tech names a lift after a pumelling on Wednesday.

Crypto regulation

Regualtion is a two-way street – for crypto like every other asset class. It adds legitimacy and gives investors confidence to invest but can also strangle innovation and retrict business. European Comission Vice President Valdis Dombrovskis said one of the aims was to allow crypto asset companies authorised by one of the 27-member states to offer its services across the European Union.


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