A difficult trading week ended with a mass sell off of global stocks sparked by continuing Greek failures to form a government and fears that Greece is moving closer to abandoning the euro. This despite the G8 having a summit over the weekend and stating their unified desire to keep Greece in the Euro. European officials declared that they have been working on a contingency plan should Greece exit the eurozone, aimed at minimalizing the fallout and preventing the domino effect.
The ongoing debt crisis in Europe managed to dominate the news pushing the highly anticipated Facebook IPO to the sidelines. The social network Facebook went public towards the end of the week, but the share ended the trading only slightly higher at $38.23, with demand described as lackluster. The $38 share price valued the eight-year-old social network site at $104bn with its Shares increasing more than 10% to $42 within minutes of trading starting, before quickly falling back under the weight of global concerns dominating the market. These concerns saw Stocks fall across the board with the Dow Jones Industrial Average closing down 0.59% on Friday, the S&P 500 index finishing 0.74% down whilst the Nasdaq Composite index closed down 1.24%.
However, with the fanfare over facebook, investor focus has been on hat happened after European markets closed with the credit ratings agency Fitch revealing it had downgraded five Greek banks just a day after the agency cut Greece’s sovereign rating. On Thursday, fellow agency Moody’s downgraded 16 Spanish banks. European banks, which had fallen on Thursday, recovered on Friday with Santander reversed early losses to finish 2.8% higher at the close, whilst Bankia shares jumped 23% following Thursday’s 14% fall.
The week was a good one for binary traders, with plenty of volatility creating plenty of profit opportunities and traders should expect more of the same next week too.
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