What is the European stock exchanges operation forecast for the next couple of years

Adjustments due to the COVID-19 pandemic?

European stocks suffered a drop on June 24, 2020 due to the markets’ effort to increase the turnover in the midst of the COVID-19 cases increase in the US. The Stoxx Europe 600 SXXP index, + 0.72%, dropped by 1.2% to 362.99 after an increase by 1.3% the previous Tuesday. The German DAX 30 DAX + 0.69% index dropped by 1.4%, the French CAC 40 PX1 + 0.96% index dropped by 1.4%, and the FTSE 100 UKX + 0.38% index dropped by 1.5%.

On the last Wednesday before the said date the Wall Street grew, because the Dow Jones Industrial Average YM00 futures plunged by 0.43% more than 200 points. Dow DJIA, + 1.17% and the S&P 500 SPX, + 1.09% indicated a second growth session on the preceding Tuesday, and Nasdaq Composite COMP, + 1.08%, set a new closing record, led by the Apple AAPL shares, + 1.32%.

What to expect from the pandemic?

According to one of the opinions, voices among others also by Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank, in one of the newsletter for the company’s clients, currently there is a complete lack of direction and little predictability across the market, with one key distinction: buying blocks of stocks and hedging against potential market crash through safe-haven assets. The Senior Analyst also stated, that it is obvious that most stock prices are artificially inflated.

What does this mean? This means, that in the nearest future one should expect a drop in stock prices, even up to a critical margin. The prices should stabilize on a minimal level, after which stabilization a stable growth can be expected, even though one should not count on spikes in prices.