Good News for Forex Traders as European Stocks Advance on Hopes of Stimulus

The European Saga

The debt crisis in major European economies made it hard for the Euro to hold strong. As a cumulative effect of the debt crisis in Europe some other major world economies like U.S.A also started to show signs of stress, though their condition has never been as bad as the debt stricken European nations. However, after much discussion bailout plans were figured out when international lenders decided to help the crumbling European economy get back on its track once again by providing stimulus packages. It is now reported that the banks would continue to provide these stimulus packages. The Federal Reserve has already announced that it will move forward with its bond buying strategy to support the U.S. economy.

The Stocks in Europe

UEAs optimism grows in European market, stocks have not failed to show positive signs. The Stoxx Europe 600 Index in London rose to 292.53 after gaining 1.3 percent, thus touching the highest level since August 2008. Almost all major stocks including that of Standard Chartered and Serco group Plc exhibited a healthy performance. Standard Chartered rose by 2.9 percent to arrive at 1,831.5 pence, the highest level since December 2010. Serco advanced by 11 percent to stop at 642 pence recording the biggest leap since September 2003. Deutsch Post AG arrived at 17.65 Euros after increasing 3.8 percent and RWE AG added 3.9 percent to finish at 29.81 Euros.

Opinion of Forex Traders

Forex traders are particularly optimistic about the situation. Many are regarding this trend as the beginning of Europe’s economic crisis. They are hopeful that the efforts made by banks and international lenders would yield positive results and would help in a faster recovery of the economy. As the economic crisis is not yet completely over, many forex traders are not willing to take any risk but are happy with the situation.

It is hard to arrive at any firm conclusion right now regarding the recovery of the economy, but one thing is certain that the advancement of the European stocks is indicating towards a positive sign i.e. the confidence of forex traders in the market. However, till the crisis gets resolved traders need to keep a close watch on the developing market conditions in order to maintain making profits and avoid making losses.

Incoming search terms:
  • binary options brokers markets world

,

No comments yet.

Leave a Reply