Updated: Dec 22, 2020
Afshin Sazegar | European stock markets are deep red on Wednesday noon. Participants speak of an expansion of consolidation, buyers are holding back and waiting for lower entry prices. "Many funds are now preparing for a recession and make the deposits once waterproof," said a stockbroker. In addition, US President Donald Trump accused China once again of currency manipulation and theft of intellectual property. This dampens the hope for closer relations between the two countries during the trade talks in October.
Another source of uncertainty is the pressure on domestic policy to increase pressure on the US president. The Democrats want to launch an investigation into possible impeachment. Trump is said to have tied the release of aid for Ukraine to the delivery of compromising information about the son of Democratic presidential candidate Joe Biden.
The DAX loses 0.8 percent to 12,209 points, while the Euro-Stoxx-50 is down 0.8 percent to 3,505 points. The cyclical sectors such as technology stocks, travel companies as well as construction sector stocks are down significantly, while telecoms and insurers are showing small discounts. The euro continues to hover around the $ 1.10 mark and Bunds are on the spot. In addition, it can be seen that massive liquidity is being withdrawn from the cryptocurrencies. The best-known, the Bitcoin, collapse by 15 percent within 24 hours. But also the Ethereum like the ripple lose 17 and 13 percent. Others lose in part a quarter of their value, here the escape from the asset is particularly noticeable.