Euro Zone Recovery

www.Options-Trading-Education.com - Euro Zone Recovery A Euro Zone recovery may be in the works. Stocks rallied in Europe on news that Germany, as well as China, manufacturing indices came in higher than forecasted. A sign of renewed confidence on the continent was the lower interest rates paid at auction for Italian bonds although French bonds weakened. Meanwhile the Euro fell against thirteen of the sixteen currencies that it trades against. After the European Central Bank dispensed loans to a large number of ailing banks the specter of a run on French banks has receded. For options traders a Euro Zone recovery could mean profits in European stocks or in trading options on the Euro. Much of the difficulty in trading the Euro or European stocks has come from uncertainty. Many doubted the willingness of the EU to come up with the money needed to bail out ailing economies. Many also doubted the ability of the EU to come up with a solution that did not simply encourage greater and greater debt. The recent EU economic summit may have come up that solution and the key to longer term Euro Zone recovery. The recent EU summit arrived at two useful solutions. One is that going forward Euro Zone economies will be more closely linked, with the end result that it will harder for nations to overspend. The other is that the European Central Bank now has more flexibility and independence in dealing with both insolvent banks and insolvent nations. The bank recently made loans of roughly ...

View Count: 10 Date: January 10, 2012