Wild day DAX & FT100

[gtspeed]

Hi All

Well what a roller coaster today was, DAX started really well bouncing up and then like the FT100 wallop down it comes and keeps coming. All the indicators showed oversell but no turn, bugger

Any idea why the markets dropped so much , could it be the article 50 news or is there something else a foot

 

[InterMarket-Analysis]

Market dropped due to 2 reasons below



"Financials were pressured both by worries that a heated debate on Capitol Hill over healthcare legislation will delay business-friendly initiatives and by a flattening yield curve, said Ian Winer, head of equities at Wedbush.

Goldman Sachs equities analysts noted that if the House of Representatives was unsuccessful in passing healthcare legislation on Thursday, “stocks may start to reflect impatience about the timing of policy delivery, having made a ‘down payment’ already in multiples”. The legislation would still need to pass the Senate, seen as a bigger hurdle.

Looking at fundamentals, a record proportion of investors are now concerned that stocks globally are overvalued, with the US seen as the most expensive, according to a Bank of America Merrill Lynch survey released on Tuesday. Indeed, earlier this month, the S&P 500′s forward 12-month price-to-earnings ratio hit its highest level since 2004."