While there are some reports saying that the euro is on its way for recovery already, some economists and financial analysts are not convinced about this yet. As a matter of fact, recent sentiments show that there are still some changes for the euro currency to further tumble up and down, which means it will not be stable yet. In the short-run, this can be due to the two (2) biggest hinders, which are the German slowdown as well as the rescue infrastructure of the Euro zone that is also heavily dependent on the economy of Germany. In this regard, what should investors expect from the stock market, most especially for spread betting, CFD trading, share dealing as well as futures trading
Both of these are actually intertwined with each other. What this means is that the euro cannot exist without the German economy and vice versa. For example, on the one hand, Germany benefited from a low exchange rate that boosted the export-led economy of the country, which helped it to remain as one of the largest, biggest and strongest economies in the whole world. On the other hand, it is believed that the euro could have fallen apart already if Germany is not among its members.
The first major factor refers to the German jitters. Recently, the German IFO climate date has been released, which is expected to indicate that the Euro zone has a chance of avoiding fallout. The said survey that covers 7,000 German companies shows that the climate rating was up from 109.7 to 109.8 this month. However, it must be clarified that what this refers into is the sentiment of the investors and not the economic performance of the economy per se. This is because in the past, the sentiments of the investors for the Germany economy were really high even if the economic data shows otherwise.
On the other hand, the second major factor for this has something to do with the remaining worries on the rescue infrastructure. This is because even though the Central Bank of Europe, there are some developments in the Italian and Spanish debt that might drag down the overall market shortly. For sure, these will affect the realms of spread betting and CFD trading in the stock market.