The Greek stock market notes strong losses of over 2.37%, losing the battle with the 900 units as the majority of the shares have been handed over to the sellers. At the same time that the ATHEX is falling to the first decisive support at 891 points, the sell-off is also taking place in the markets as Frankfurt, Paris, Milan, Madrid are also in free fall with losses of more than 2% while a similar picture prevails in the derivatives of New York.
As a reason to continue with more intensity the correction that has already begun in the European and American markets, is projected today by the concern about the consequences of a possible collapse of the Chinese real estate giant Evergrande which today lost 14% of the value of the driver in a fall 3.33% Hang Seng in Hong Kong.
However, it is not just Evergrande’s case that affects the markets. The ongoing trade war with China following the AUCUS agreement between the US and Australia and Germany, which left the EU outside, creates new data in the markets, at the same time that this week its crucial meeting The Fed will look into whether it is time for the strike to begin, that is, restricting the US Federal Reserve to remove liquidity from the markets.
In the light of the above, the Greek market seems to be negatively affected by the international climate that is becoming more and more negative, resulting from the beginning of the session the pressures that manifest to lead the General Index to losses of 2.3% in the region of 891 units, the loss of which will test the upward trend.
Bank stocks are at the center of the losses, with the industry index falling below 600 points with a drop of more than 3.37% as NBG loses more than 5% of its value. Piraeus, Alpha and Eurobank have losses of 3 %.
The shares of the real economy are also under pressure, with Ellactor, ELHA, Lamda, Mytilineo, IPTO, GEKTERNA, Viohalco, etc. stock from the FTSE Large Cap is not in the green.
European markets, the 3.3% drop in the Hang Seng due to concerns about the collapse of the Evergarden, were transported like an electric shock, with the result of the already large losses that occurred on Friday, continuing today.
It is indicative that the (renewed) DAX 40 in Frankfurt falls by 2.08%, the French CAC 40 records large losses of more than 2.26%, the Italian FTSE MIB falls by 2.21%, while it is close to 2% records and the Spanish IBEX 35, with the Stoxx 600 pushing 1.81% lower.
New York and Dow Jones traded up early, with the Dow Jones hovering around 470 points or 1.4% at 33.9890 points, with S&P and Nasdaq hovering close to -1%.
Buyers are also waiting for the Fed’s two-day meeting to clarify the local with regard to the time that is being reduced and in particular whether the restrictions on bond purchases will start immediately or will be transferred to the perfect year.
Obviously, this behavior also has an aggravating effect on the domestic market and is mainly due to the negative bidding created regarding the FOMC’s dangerous statements / decisions on how to handle the weakening of the existing bond repurchase program.
By the way, the VIX Risk Index jumped to + 34%, again reaching the four-month high of 25 points.
In any case, we are at a critical technical crossroads. The record of 910 points on Friday and the plus positive conclusions seem to be catalyzed by the exact opposite and worse scenario of the loss of 899 (respectively 2,160 for the 25th), which opens the way for the 865.
It makes sense to also report a significant increase in volatility, where vigilance has increased so that on the one hand it does not stubbornly trap in buying positions, on the other hand we do not come in and out with very tight stops.
The behavior of individual stocks is, of course, declining, but the uptrend of none of those who have given buying signals has not been lost yet, something that at least gives re-entry opportunities at lower levels, and with the exit points being even narrower.