Tensions In Europe And Weak Results Pressure Equities

Tensions In Europe And Weak Results Pressure Equities

US stock indices looked set to extend a weeklong slide, as ratcheting tensions between Ukraine and Russia and poor results from some US firms hit investor confidence Wednesday morning.  



Tensions In Europe And Weak Results Pressure Equities
Tensions In Europe And Weak Results Pressure Equities

Across the Atlantic, the British FTSE, German DAX and French CAC 40 indices all fell about 1.15% by 9:00 a.m. EST.

Russian President Vladimir Putin has begun pushing for various forms of retaliation to strike back against the Western nations that have levied economic sanctions on Russia, The New York Times reports. "The political tools of economic pressure are unacceptable and run counter to all norms and rules," he told Russian sources, according to the Times. The suggested "retaliatory measures," as Prime Minister Dmitri A. Medvedev dubbed them, include banning the use of Siberian airspace for transcontinental flights from Western nations, boycotts on American consumer goods and bans for major US financial firms doing business in the country.

Weak results compound equity fears
Earnings season delivered no relief yesterday afternoon, as Groupon announced losses of $22.9 million, or 2 cents per share, falling behind analyst estimates. Sprint, one of the runners-up in the US telecom industry behind AT&T and Verizon, formally pulled its bid for T-Mobile, which would have consolidated the third- and fourth-place mobile service providers into a more dominant position.

"Ukraine is the obvious mover," Ben Kumar, an investment manager at Seven Investment Management, told Bloomberg. "Various companies when releasing their earnings in Europe, the chief executives have been coming out and saying Ukraine is hurting sales."

Overall, investors had plenty of bad news to look at across the markets, and nothing much to buoy their spirits. Overall, the Dow Jones Industrial Average now stands just 0.89% below its starting position for 2014, while the S&P 500 remains a little healthier at 3.89% above its January 2 figure.

Using binary options to hedge risk
Nadex binary options offer an attractive way for investors and traders to potentially hedge their downside risk in volatile markets. Buying and selling contracts on the exchange allows you to potentially gain from rising and falling markets, respectively. By taking a position counter to your main portfolio - selling binary options in a US stock index while holding stocks in another account, for instance - you may offer your portfolio more security.

Nadex is also a fully registered and regulated exchange with the Commodity Futures Trading Commission, which means that it offers more protection against global turmoil than an offshore provider, which does not have to abide by the same regulations and funding guidelines.


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.