Will the witness of the rise move from Wall Street to Europe?
For some sessions Wall Street has been struggling. The US listings seem to have lost the polish and strength they had earlier in the month. In the last session of the week, they ended more than 2 percentage points lower.
But it would be shortsighted to think that the US stock market is in trouble. It would be like seeing an athlete who has just won a 100m race vent, and thinking that he is not a champion. In reality he has just won a race and is catching his breath. Ready to race and win again next time. The US stock exchange is like this. Index prices are at all-time highs. The S & P500 has risen by more than 40% since the March lows. The Nasdaq is on top ever
The point is that the US stock exchanges now have to catch up. And then it’s up to the stock markets of the Old Continent to pull the world cart, act as a locomotive. Also because the huge amount of money that central banks have entered into the system will partly end up on the financial markets. If institutional investors think that the American stock exchanges have run enough for now, all that remains is to turn elsewhere, that is, to the European stock exchanges.
The stock market is preparing to rise, the real one. And Piazza Affari could rise by 25%
If the US stock exchanges are at historic highs, many of the European lists are far from the coronavirus pre-emergency quotations. Probably because for them the descent was deeper than for Wall Street.
For example, the Ftse Mib index closed the week just below the 20 thousand points threshold. At the end of February, prices marked a year high above 25 thousand euros. The recovery space for the Milan price list is 25% of the current values.
In order for the Ftse Mib index (INDEX-FTSEMIB) to rise again as early as next week, it must first achieve a close above 20 thousand points. To then be able to bypass the June maximum of 20,400 points. At that point, prices will have the road open to reach 25 thousand. Probably by the end of the summer.