During the beginning of the week binary traders who are playing on European stock market have been motivated to continuing buying binary “call” option on major stocks market as they were mostly higher during Monday morning, continuing a rally seen at the end of last week after a summit of European Union leaders delivered more than expected in terms of a plan to save up euro-zone banks. The Stoxx 600 Europe index rose 0.4% to 252.13. London’s FTSE 100 rose 0.3% to 5,590.15, while Barclays PLC gained 1.2% after announcing the resignation of Chairman Marcus Agius last week over attempted manipulation related to LIBOR interest rates. France’s CAC 40 index rose 0.4% to 3,209.70, while Germany’s DAX 30 index hed 0.1% to 6,414.19.
During the middle of the week as U.S markets were closed, binary brokers have registered a very small orders volume on Europe stock markets as binary traders were waiting Thursday trading session when the European Central Bank and Bank of England are due to announce the results of respective meetings.
On Thursday’s trading session binary traders have been mainly buyer of binary “put” options in most of European stock market after ECB and Bank of China have both of them cut rates while the Bank of England boosted its quantitative-easing program. European stock market have been in some selling pressure after European Central Bank President Mario Draghi spoke of a muted loan environment and downside risks to growth, but also some inflation risks, in a press conference following cuts the key lending rates. ECB have cut its refinance rate by 25 basis points to a record low of 0.75%. It also cut the deposit rate on money parked by banks at the ECB to zero from 0.25% and lowered the rate on its marginal lending facility to 1.5% from 1.75%. The French CAC 40 index was down 1.1% to 3,231.68 and the Spain IBEX 35 index was down some 2.6% to 6,978.70 and the German DAX 30 index fell 0.6% to 6,525.20, while the FTSE 100 index was flat at 5,684.78.
The information in the above analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.