Global Indices being hit by the China Effect
There was something of a melt down yesterday experienced across the globe, which was caused by many investors beginning to worry about not only the very well reported Greek exit of the Euro Zone which is looking more and more likely, but also be the worst performance in China for over 20 years.
Many of the Commodity Markets suffered huge losses with oil and copper lowering in value, and on the Forex Markets the Australian Dollar, the Euro and the New Zealand Dollar saw their respective values drops against most major currencies.
The one major concern in China was that many companies in fact hundreds of them have suspended their share trading as a way of protecting their share values from the unfolding slump.
In fact the International Monetary Fund made matters even worse by issuing a warning that there was something of a global slowdown in place with both economical as well as political upheaval being experienced in Ukraine, the US along with both Greece and the Middle East. The IMF strongly advised the Federal Reserve in the US to delay any increase in interest rate rises until at the very least next year.
In fact if the US Dollar continues to rise in value the IMF has expressed strong concerns that its increase in value could have some worrying knock on effects in other parts of the world.
Yesterday in London the FTSE 100 index closed down showing a huge loss of 103.47 points which saw overall losses on those major UK shares nose-diving collectively by £172billion.
Many other European stock markets experience even larger loses with Milan being down 3 per cent over in Paris their indices dropped by 2.3 per cent, Frankfurt saw a 2 per cent loss and over in Madrid a loss of 1.8 per cent was reported.
China saw the worst losses of all with over £2trillion being knocked off the value of their listed companies which affected over 900 China based companies.
This continued loss in the value of share prices and the ever fluctuating value of different currencies is not going to look like ending any day soon, and with that in mind if you are a Binary Options trader or an online Forex trader then now really is the time that you should be taking advantage of these swings in the value of both indices and currencies.
