European stocks performed well on Friday and set their sights on 7-year highs, as the eurozone economy showed signs of strength and Greece moved closer to a deal with its creditors.
Friday, February 13, 2015
Friday data indicated the eurozone economy expanded more than expected during the fourth quarter of 2014 on the strength of robust German growth.
The Stoxx Europe 600 gained 0.4% on Friday and reached its highest mark since 2007. The German DAX hit its highest level ever, topping the 11,000 mark.
“We expect the positive underlying momentum in the economies to continue. Lower oil prices mean higher purchasing power for consumers and the lower euro will improve sentiment and gradually start to make its way through to growth too,” Evelyn Herrmann, European economist at BNP Paribas, told The Wall Street Journal.
The European Central Bank also plans to begin a quantitative easing program in March which is expected to weaken the euro and attract foreign investors to European stocks. Goldman Sachs forecast the Stoxx Europe 600 to advance by 8% in the next 12 months, as opposed to 4%.
Eurozone, Greece work to reach agreement
Greek Prime Minister Alexis Tsipras has expressed that he has no intention of abiding by the current bailout program, according to Bloomberg. In addition, Greece is on the brink of bankruptcy – a prospect that could endanger economic growth throughout the euro region.
Having said that, Tsipras and European Union officials are working on a new aid program. Analysts are confident the two groups will reach an agreement, even if it is a last minute deal.
“The crisis in Greece remains a risk, though so far contagion has been very limited and we expect it to eventually reach a deal,” Nick Kounis, head of macro research at ABN Amro Bank NV in Amsterdam, told Bloomberg. “The euro zone is likely to continue to surprise positively in 2015.”
Short term expirations through Nadex
Nadex offers contracts ranging from 5 minutes to one week that allows you to take a view on where you think a particular market will be in the short-term.
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.