Chinese markets saw a rise in the share prices of several companies including publishers. This is contrary to the current market conditions where there is hardly any stock market news that can provide respite for traders. Though there are several reasons for this rise the most dramatic one is the awarding of a Chinese author with the Nobel in literature this year. This is by all means a welcome change for the Chinese stock conditions. The Chinese traders in binary options will also have a better opportunity to transact with stocks as their underlying asset, hoping to gain a considerable amount from that.
Rise of the stocks
In Chinese markets stocks of several companies rose to a large extent. The Shanghai Composite Index rose to 2104.93 with a 0.9 percent gain this week. The CSI 300 Index rose to 2304.53 after climbing 0.1 percent. This climb was principally led by financial companies. Shipping companies also saw a gain in the market. The China Shipping Development Corporation faced a rise of 0.9 percent and China Cosco Holdings Co. of 1.9 percent. Banks in China also advanced in the market. Industrial & Commercial Bank of China who happens to be the nation’s biggest lender advanced 0.5 percent and China Construction Bank climbed 1.7 percent. With all this data it seems that Chinese economy is starting to recover from a state of slumped growth that plagued the market during past few months. However it is anticipated that the Chinese stocks will continue to rise after enjoying a second week of gains.
Analysts’ Assessments and the Effects on Binary Options Market
Analysts cite a few reasons for this rise in Chinese stocks. Firstly, US economy has started to show signs of recovery. The economic situations in Europe, though remain largely volatile, are expected to improve shortly with the French and Spanish budget plans. This is creating a positive effect on Chinese traders. As the probability of exporting goods to the US and Europe is rising the Chinese stocks are showing the reflection of the hope in Chinese economy. Moreover certain incidents in favor of China have also contributed to this rise. With a Nobel laureate in literature this year books are speculated to be sold in large numbers and this is also pushing up the stock prices of Chinese publishing companies. All this has only added to the advantageous position that the Chinese stocks already are in.
Analysts vary in opinion regarding the forthcoming week. Some are optimistic, some say that the market prices will drop and some chose to remain neutral. The market trends are always uncertain. No one knows what the future will bring. However, with Chinese stocks investors and analysts seeing the recovery of the world economy, trends in binary options trading are also expected to be on the upside.