Shorting stocks on the biggest exchanges in Europe proved to be the right strategy on Thursday morning.
Investors are selling out the assets after the Fed released the minutes of the last meeting in July. The minutes show that many members of the committee are unwilling to cap the yields of US bonds.
The minutes prove the economic outlook for the US and world are gloomy, and that Fed won’t introduce a yield curve control strategy. This is a hint that the volatility of the rates in the US may increase.
At the moment of the writing DAX30 is down -0.74%, French CAC40 -0.88%, FTSE100 -0.99%, and Spanish IBEX35 -0.72%.
As for the companies, the biggest drop in price can be seen in the car manufacturing sector. Renault SA lost -3.23% today, while German market leader Volkswagen AG is also in the red. losing -2.23%.
Financial organizations are also experiencing sellout. Nordea Bank AB is down -1.81%. On the London stock market, multinational commodity trading and mining company Glencore PLC is down -2.27%.
Many SimpleFX traders benefited opening SELL orders this morning, however, nobody knows when’s the time to buy-low the underpriced assets.
