How Binary Options Traders Can Capitalize On This Data
With everything going on right now, we can bet on a couple of different things. First off, investors and economists are just about sure that the Eurozone is going to have to put more stimuli in place soon. As a result, we can expect that the value of the Euro is going to continue to fall. Another thing that’s pretty much a surefire bet is based on the data correlation strategy. We know that when big economies get hit hard, one of the first places investors look is into the US markets. With that said, we can expect to see gains continue in the US Market; at least for the short term. Using this data, binary options traders have the ability to really improve on profits!
Horrible news for the Eurozone sends US stocks on a bullish trend. The S&P 500 broke through the 2,000 landmark while investors hope to see the European Central Bank increase their stimulus efforts. Today, we’ll talk about how bad data in Germany, bad politics in France, and an overall bad economic outlook for the Eurozone sent the US stock market on a bullish path. We’ll also look at what binary options traders can do to profit from the news.
Bad Business Sentiment Data in Germany
One of the biggest pieces of news that has hit the market this week came out on Monday when the Munich-based IFO think tank reported its newest business climate index data. Last month, they reported that the index was at 108 points and expected to fall to 107 points this month. Unfortunately for the Eurozone, the fall that took place was much larger than expected. The new business climate index score, based on a survey of more than 7,000 companies, hit a low it hasn’t seen in more than a year of 106.3 points. Much of the fall is said to be attributed to tougher sanctions being placed against Russia as a result of the Russia/Ukraine conflict, as well as the reaction Russia had to those sanctions.
Public Political Feuds in France
Another factor that seems to be plaguing growth in the Eurozone is the public political feud we’ve seen in France. Tensions heated up as French lawmakers worked to come up with a way to stimulate the French economy. As a result of the feud, French Economic Minister Arnaud Montebourg announced that he and two of his colleagues would be leaving their posts. This leaves Francois Hollande with quite a struggle moving forward as he attempts to reduce the unemployment rate in the country of more than 10%; and gain the trust of more than 80% of French voters who don’t think he’s got what it takes to make a difference.
U.S. Markets Skyrocket
As a result of the poor news in the Eurozone, U.S. markets skyrocketed. On Monday, the S&P 500 broke the 2,000 mark for the first time in history during day trading. Unfortunately, it closed just shy of that mark at 1,997.92. In the meantime, the Dow Jones Industrial Average went up 75 points, while NASDAQ increased by 18 points; making for a great day in the US stock market.
Source: investing.com
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