Oil and gold have once again reacted quickest and the fear factor has also transferred to equity markets, with all the major European indices weaker. Like the FTSE 100, the DAX has been drifting over the last couple of weeks and now sits below the 50- and 100-day moving averages.
Under normal circumstances traders would be discussing the impending German general election and the chances of a continuation of Angela Merkel’s reign. The importance of a stable German economy and a clear policy towards the EU can’t be over emphasised.
Ryanair has hogged the headlines today after issuing a profit warning, saying full-year results would at best come in at the bottom end of expectations. Having made a rod for its own back with the regularity in which it has managed to beat expectations in the past, the shares are down 14%.