Germany 40

At the time of writing, the stock markets were starting to come off their best levels. With this being the month- and quarter-end, there will be lots of repositioning today, which may mean lower stock prices later, given that we have been in a risk off market environment for much of September. In any event, volatility is here to stay.

European stocks and US index futures resumed lower in the first half of Monday’s session after Friday’s short-covering bounce. Though the markets managed to stage a mild bounce off their earlier lows, the lack of any important data or central bank speech today means there won’t be any fundamental triggers to cheer investors up. Consequently, we are expecting to see further bearish price action once US investors enter the fray later on.

At the time of writing in mid-morning European trade, the German DAX was off its earlier lows, but still lower on the session in what has so far been a mixed day for European markets. But with the euro and pound weakening again, it is obvious investors continue to remain concerned over the growing threat of stagflation in Europe.

The risk off tone continued in the first half of today’s session. The major global indices hit fresh weekly lows, reaching their lowest levels in several weeks, causing the VIX – the fear index – to rise to its highest level since May.

Thanks to weakening Chinese manufacturing data, we have seen fresh falls in crude oil and some base metals, hurting energy stocks and miners. Our short-term DAX outlook is therefore bearish given growing worries over the health of the world's second largest economy.

There were some downside surprises with French and UK services, and German manufacturing, all disappointing expectations

Sentiment boosted because of warmer-than-expected weather which has reduced fears about gas shortages.

Stocks jump as coronavirus cases and deaths slow in mainland Europe

The Dax has plunged a further 3.5% across the morning session on Friday, extending losses of 1.5% from the previous session, as coronavirus fears escalate.

Dax jumps 1.3% amid growing hope that ECB will follow in Fed's footsteps

Have a great weekend, stay safe, and make sure to wash your hands!!

Dax drops over 1% on coronavirus fears