Euro Stocks Fall On Weak Oil And Inflation

Euro Stocks Fall On Weak Oil And Inflation

European stocks dropped Thursday as oil and gas shares slumped and oil prices dipped below $79 USD per barrel.

Euro Stocks Fall On Weak Oil And Inflation
Euro Stocks Fall On Weak Oil And Inflation

The Stoxx Europe 600 declined 0.2% to 334.45. France’s CAC 40 fell 0.3%, Germany’s DAX 30 fell 0.3% and the UK’s FTSE 100 lost 0.2%. December Brent crude dipped 1.8% to $78.90 USD per barrel. Oil indices Total SA and Royal Dutch Shell PLC declined 1.6% and 1.3%, respectively.

Bloomberg reported that Brent crude oil fell to its lowest price per barrel in four years as OPEC indicated it would not cut output. Saudi Arabian Oil Minister Ali Al-Naimi dismissed the possibility of an OPEC price war.

European inflation projected to slow
The European Central Bank conducted a survey of economic forecasters, who predicted inflation rates will increase by a mere 0.5% this year, reported MarketWatch. The same survey in September indicated a 0.7% gain. The 2015 inflation rate is expected to be 1%, while 2016 inflation should come in at 1.4%. Those numbers fall well short of the ECB’s target inflation rate of 2% in the medium term.

ECB President Mario Draghi planned to begin an asset purchasing program called quantitative easing as a measure to spur economic growth in the region. The plan was met by opposition from several officials, including Bank of France Governor Cristian Noyer and German central bank Bundesbank President Jans Weidmann.

“ … [W]e have since seen a gradual [inflation] deterioration across both countries and the continuation of this would likely mean a diminished degree of opposition to ECB easing in the future,” Joshua Mahony, research analyst at Alpari UK, told MarketWatch. Any move lower in CPI readings from the countries “would surely lead to a softening of their respective stance as the need for stimulus to gain traction in prices is increasingly needed.”

Nadex offers protection against market spikes
Investors can find themselves out of luck when the market makes a major shift against their positions. In these instances, known as market spikes, traders can get stopped out – losing their positions entirely. If the market recovers and becomes profitable again, the investors will have missed out on the progress. But Nadex offers unique binary contracts with short-term expirations that range from 20 minutes to a week, and you can never get stopped out. By investing in binary options, investors can hedge against market spikes and potentially profit in a volatile market.

This information has been prepared by Nadex, a trading name of North American Derivatives Exchange, Inc., prepared by independent third parties contracted by Nadex or reproduced form third party news agencies. In addition to the disclaimer below, the material on this page does not contain an offer of, or solicitation for, a transaction in any financial instrument. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.