The Condition of the Canadian Market
The probability of the renewed economic debacle in Europe has been resolved to some extent but it has done little to lift the Canadian market from shaky ground. Most of the stocks in Canada failed to exhibit a good performance in the last four to five weeks. As a result, gains in this North American nation’s market have been erased to a significant level. Binary traders are perhaps the ones who are suffering most in such a precarious situation.
Out of 239 companies enlisted in S&P/TSX, just 26 were able to show a good performance as far as stocks are concerned. Barrick Gold Corp. sank by 5.6 percent, the biggest decline since November 2012. On the other hand, both Torex Gold Resources Inc. and Alamos Gold Inc. slumped more than 6.5 percent. Canadian Natural Resources and Suncor Energy Inc. both dropped by 3.3 percent. Alacer Gold Corp. stumbled 6.5 percent. The Standard & Poor’s/TSX Composite Index dropped 2.1 percent or 259.98 points to finish at 12,422.12, thus exhibiting the biggest fall since June 2012 and wiping away a gain of around 3.6 percent.
Moreover, the fall of oil prices in the international market has also taken its toll on Canadian oil shares. Most of the energy companies posted a fall in their share prices as oil price dropped to $94.45 per barrel in New York.
It is hard to arrive at any firm conclusion regarding such behavior of the Canadian market. However, experts opine that it is the global economy that is solely responsible for such a poor performance of Canadian stocks. The growth in US is faced with uncertainty and the economy in Europe is also not going well. All these are having a negative impact on the Canadian market which is being forced to perform poorly. It seems that investors are not willing to invest money in Canadian market nowadays.
As long as the global economic crisis continues, binary traders will have to take each and every step carefully in order to maximize their profit potential. It is evident that speculations are now ruling the Canadian market and traders have to avoid acting according to speculations if they have to earn some profit in a volatile market condition. The time required for the recovery of the global economy is uncertain and so is the condition of binary traders.