European stock market decline continues to expand Germany, French stock index fell more than 12%

European stock market decline continues to expand Germany, French stock index fell more than 12%
At 23:58 on the evening of March 12, the decline in European stocks expanded. The German DAX index, the French CAC40 index, the European Stoxx 50 index all fell more than 12%, and the British FTSE 100 index fell more than 10%.The three major US stock indexes fell more than 8%.As of 00:01 on February 13, the French CAC40 fell 12.4% reported 4038.54 points; German DAX index fell 12.03% reported 9182.57 points; Dow fell 8.94% reported 21448.43 points; the Nasdaq fell 8.07% reported to 7310.43 points; S & P 500 fell 8.15% reported to 2518.04 o’clock.The chief FICC analyst of CITIC Securities clearly believes that it is more important to think calmly during the historic week.He pointed out that there is no doubt that this is a financial crisis, the epidemic is a fuse, but the root cause is invalid currency easing and high corporate leverage.Take U.S. stocks as an example. Under the bull market feast of U.S. stocks in the past decade, we should see the high leverage of US listed companies, which in turn benefited from the long-term global low interest rate easing.Obviously, the liquidity of financial institutions is actually a symbol, so American financial institutions seem to be stable, but in fact correspond to a large number of corporate levers, so once the market is broken by the black swan and exceeds expectations, it will fall into a cyclical decline.trend.As a result, the long-term QE has been cut continuously, but the market liquidity is insufficient, and even a special combination of gold and risk assets has declined.Another important factor is the trend trading power of ETFs, which has overdrawn the expectation of currency easing, so it has led to the failure of currency easing.For domestic investors, although everyone seems to be watching the fire from the other side, they should take a good look at the changes in the RMB exchange rate over the past two days.

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