Why The FTSE 100 Is Likely To Climb At The End Of This Week

The FTSE 100 is headed into what I believe will be a great month. While the index hasn’t been doing too well as of late, the ECB will be having a meeting soon that may change things for European stocks. Today, we’ll talk about the ECB meeting, why it’s likely to have an affect on European stocks, what we can expect to see from the FTSE moving forward and how binary options traders can make money off of the coming trends.

The ECB Meets Thursday

On Thursday, December 3rd, the European Central Bank will be holding a very important meeting. The discussions at the meeting will revolve around the European economy and plans to further stimulate the economy in the region. You see, earlier this year, the European Central Bank acted to stimulate the economy by putting Quantitative easing in place and lowering their interest rate into negative territory. Unfortunately however, the efforts made simply didn’t work. As a result, economists, investors and consumers have been calling on the ECB to expand stimulus. To those calls, Mario Draghi responded with comments that lend credence to the idea that the ECB is ready to act again. In a recent statement, Draghi had the following to say…

“[The ECB is prepared] to expand its stimulus program at its next meeting in early December if needed to support the economic recovery. [The ECB needs to assess] if left to it’s own forces the economy will be able to achieve a self-sustaining trajectory… If not, then it will require more monetary stimulus.”

In other recent statements, Mario Draghi has mentioned that the ECB has many tools at its disposal to stimulate the economy and would not hesitate to use them if necessary. This means that further quantitative easing and interest rate reductions could be coming relatively soon.

How This Meeting Is Going To Affect European Stocks

Regardless of the outcome of the ECB meeting, European stocks are going to react in a big way. How they react depends upon what the outcome of the meeting actually is. Here are the two possibilities…