European Markets: happy, but unhappy

Discussion in 'General Trading Discussion' started by WaveWage, Oct 12, 2015.

  1. WaveWage

    WaveWage Well-Known Member

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    It is titled like this because European markets are pretty hard to follow at anytime. Meanwhile they often follow the figures and moods from Wall Street and Asian markets, it seems today, it wouldn't be exactly like this. Let's get into this.


    The European markets was driven high in the last days with the U.S. labor data being lower than expected and the less likeliness felt by investors of the Federal Reserve to pull the trigger this year, meanwhile Feds still says it is expected to do so. While for the latter I understand why Europe is happy (after all, that strong dollar isn't really nice if they want to feature exports in $US (like Airbus Industries does) or exports to US). But for the former, I still try to understand. Explanations wanted.


    But today, European stocks slowed their buying figures because, well, overbuying doesn't look that good, after all.


    About the figures, CAC 40 is at 4,668.7 pts with -0.27% or -12.69 pts, meanwhile IBEX 35 is at 10,246.40 pts with -0.61% and -63.20 pts, DAX 30 got +0.23% or +23.23 pts with 10,119.83 pts and finally, FTSE 100 had -0.70% or -44.98 pts with 6,371.18 pts.
     
  2. hs0zfe

    hs0zfe Active Member

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    Au contraire. By devaluing, they beggar their neighbors. OTOH, a fallen currency will lead to painful welfare losses.​ The low Euro means, Airbus is delighted to get paid in $$s. But it hurts them when they need to buy raw materials, paying in USD.
     
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