Today, the collapse of the US technology market has heavily influenced the performance of the European stock exchanges. The German stock exchange has collapsed, the Milan stock exchange has wobbled dangerously on the edge of the precipice. The fear has arisen on the markets and now the future of Piazza Affari is truly hanging by a thread.
FAANG shares cause panic on the stock market
A wave of panic swept through the European stock exchanges today. Fears that come from afar and that had been latent for a few days. The equity markets of the Old Continent all closed down, but with marked differences. The worst was the German stock exchange which lost 2.4%. Paris lost 0.9%, London and Madrid lost 0.6%. In Milan, the Ftse Mib index (INDEX: FTSEMIB) lost 1.8% and closed the day at 23,997 points.
But what happened so striking that it caused panic and collapsed the German stock market? There was a calm on the markets until around 1:00 pm. But after 1pm, the first news of the opening of US equity markets triggered a sudden sell-off. In particular, hi-tech stocks, the so-called FAANG shares, namely Facebook, Amazon, Apple, Netflix and Google, have come under the lens. These stocks all opened lower and the Nasdaq prices at the start created a bearish gap.
The fear has arisen on the markets and now the future of Piazza Affari is truly hanging by a thread
Already in the last analysis, the Stock Projection Experts had referred to the creaks coming from Wall Street. Today there was the collapse, at least in the beginning. Within an hour of closing markets, the Nasdaq was losing 2.6%, the S & P500 exactly half, 1.3% and the Dow Jones 0.5%. Proof that this crisis is entirely internal to the technology sector. But it is strong and likely to heavily influence European equity markets as well.
The German stock exchange is the one that pays the most in terms of losses, because when traders decide to sell, they liquidate their profit positions. The German stock market in recent weeks is the one that has earned the most.
The decline was also strong in Piazza Affari. Here, the collapse of the Ferrari stock was added to the decline linked to the market context. Operators did not like that the budget targets for this year were postponed to 2022 due to Covid. Thus, despite the positive results, the stock lost 8%, dragging the Milanese market behind it.
(We remind you to carefully read the warnings regarding this article, which can be consulted who”)