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The revised Eurozone Q4 GDP increased to 0.2%, but its relevance diminished with updated forecasts

Eurozone’s final GDP for the fourth quarter recorded growth of 0.2%, compared to the previous estimate of 0.1% quarter-on-quarter. This revised figure, published by Eurostat on 7 March 2025, shows a small improvement in economic performance.

Recent adjustments to the euro area’s economic outlook may diminish the relevance of this updated data. Despite this, the figures indicate a continued, albeit modest, expansion in the region’s economy.

Challenges Persist

Although the revision to fourth-quarter GDP shows a slightly stronger expansion than first reported, the overall growth rate remains subdued. Persistent economic headwinds remain in play, and while this latest adjustment may be viewed as a minor positive development, it does little to alter the broader trajectory. The challenges that have defined the euro area’s economic conditions in recent months are still present, meaning expectations for the coming weeks should be carefully considered.

Labour market conditions, inflationary pressures, and monetary policy decisions all continue to weigh on prospects. With price growth in the eurozone still above the European Central Bank’s target, any renewed inflationary trends could complicate future policy choices. Wage dynamics and consumer demand remain areas to watch, as these factors could influence both economic resilience and any potential policy shifts from officials in Frankfurt. The latest data does not change the broader picture, but it does reinforce the cautious optimism that some observers have maintained.

As markets digest this revision, attention will likely shift towards upcoming indicators that could provide more timely insights. Industrial production figures, retail sales data, and inflation reports in the coming weeks will likely carry more weight in shaping expectations. Should further releases imply sustained growth or renewed softness, adjustments in positioning may follow. Economic sentiment remains fragile, and even marginal shifts in data points could prompt reactions, particularly given the ongoing uncertainty surrounding central bank policy.

Looking Ahead

For now, the reassessment of recent GDP growth offers a slight upward revision, but it does not represent a fundamental change. Moving forward, the reaction to upcoming reports will be key. Decision-making should account for the broader context, acknowledging that while this revision leans positive, it does not eliminate doubts about the durability of the recovery.

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Traders are encouraged to join a free Telegram group for real-time stock alerts and insights

A new Telegram group has been established for stock traders, offering timely alerts about unique stock opportunities, both buying and shorting. This service operates as a broadcast channel to avoid unnecessary noise, providing focused and actionable information.

The group supplies alerts for S&P 500 and Nasdaq 100 trade ideas, featuring stocks with strong potential. Members can expect fast notifications on timely market entries and insights into effective risk management strategies.

Notable Trade Examples

Recent trade examples include Intel (INTC) with an 11.9% profit and Tesla (TSLA), which had a 2.9% gain in just 90 minutes. The service is emphasised as free, with no hidden fees, designed to keep traders informed without distractions.

The establishment of this new alert system presents a streamlined approach to tracking stock moves without the clutter often found in open forums. By functioning purely as a broadcast, this channel ensures that participants receive precise information without the discussion threads that can sometimes dilute focus. The priority here is speed and accuracy, two elements that tend to make a considerable difference when aiming to capture short-term movements in large-cap equities.

Given the focus on high-profile indices such as the S&P 500 and Nasdaq 100, the alerts cater to those who closely monitor liquid stocks with strong momentum. These names often experience pronounced moves, which can offer compelling entry and exit points when coupled with disciplined risk management. The group prioritises identifying setups where risk-reward profiles align favourably, with notifications arriving in real time to allow swift execution.

Importance Of Timely Insights

The mention of recent successes, such as the return from Intel and Tesla, reflects the group’s intent to highlight timely opportunities that present measurable upside in constrained timeframes. An 11.9% gain in a trade, particularly from a stock as widely followed as Intel, suggests that the alert system has identified trends early enough to capture meaningful movement. Similarly, a 2.9% rise in Tesla within 90 minutes illustrates a capacity to pinpoint volatility spikes effectively—something particularly useful for those employing shorter-term strategies.

For those navigating the weeks ahead, keeping pace with developing trends in widely tracked stocks will continue to be essential. There is renewed attention on how liquidity and sentiment shifts affect price action, meaning prompt access to insights can play a vital role in execution. Awareness of short-term trade opportunities without distraction offers an edge, particularly for those prepared to act decisively when the right conditions arise.

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The euro continues its strong performance, with upcoming challenges potentially affecting its momentum in future

The euro has experienced notable growth, with EUR/USD rising 0.6% to 1.0854, marking its strongest weekly performance since December 2008. This shift brings the currency closer to the 1.1000 mark, distancing it from discussions of parity.

The 200-week moving average at 1.0872 is a key level to observe, as crossing it could lead towards 1.1000. However, there are potential challenges ahead, notably the German parliamentary vote on debt brake reform scheduled for 18 March.

German Parliamentary Vote Challenges

This vote requires a two-thirds majority, which presents difficulties due to party alignments. Current alliances may lack sufficient support, making the upcoming discussions important for euro sentiment in the coming weeks.

A push beyond the 200-week average has historically acted as a catalyst for further movement. Breaking through this level could foster greater confidence, potentially driving more traders to back extended gains. However, any failure to clear this threshold decisively may leave the euro vulnerable to retracement, prompting caution among those eyeing additional upside.

Beyond technical thresholds, political developments in Germany may hold sway over sentiment. The upcoming parliamentary vote on debt brake reform carries weight, as previous debates over fiscal policy have impacted investor outlooks. If lawmakers struggle to secure the necessary backing, uncertainty may dampen enthusiasm, particularly if discussions hint at prolonged political obstacles.

External Market Influences

External factors could also influence positioning. Shifts in Federal Reserve expectations remain a central variable, with recent data prompting adjustments in rate projections. Any hawkish signals from policymakers may boost the dollar, countering the euro’s upward trajectory. Conversely, indications of easing could sustain the euro’s momentum, reinforcing support near recent highs.

Market participants will need to balance these influences carefully. While upward pressure remains evident, any setbacks in Germany’s legislative process or unexpected moves from the Fed could interrupt gains. The ability to assess momentum in real time and respond swiftly to emerging signals will be important in the sessions ahead.

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European stocks declined at the market open, influenced by Wall Street’s prior heavy selling

European stocks opened lower today, reflecting a fluctuating week for regional equities. The Eurostoxx fell by 0.8%, while Germany’s DAX declined by 1.3% and France’s CAC 40 decreased by 0.8%.

The UK FTSE dropped 0.4%, Spain’s IBEX fell by 0.9%, and Italy’s FTSE MIB saw a decline of 0.6%. The push for debt brake reform has contributed to German stock performance this week, but negative sentiment from Wall Street’s heavy selling yesterday has affected market confidence.

Market Reactions And Sentiment

Currently, S&P 500 futures are modestly up by 0.3%, raising questions about potential market reactions ahead of the upcoming US jobs report.

The numbers speak for themselves. A broad decline across European markets is not a coincidence, and the overall mood remains cautious. With some of the region’s major indices shedding value this morning, the sell-off from the previous New York session has left a mark. Wall Street’s downturn spilled into today’s trading, and while S&P 500 futures are attempting to recover, uncertainty lingers.

Germany’s performance stands out. A sharper drop in the DAX compared to its European peers suggests that discussions around debt brake reform have influenced sentiment. Policy shifts matter, particularly when they lead to questions over fiscal discipline. Investors are weighing whether relaxation of debt constraints could boost economic activity or bring risks. That debate is not over yet, and the reaction in German equities reflects that.

France and Spain are not far behind in terms of losses this morning. The CAC 40 and IBEX have seen steady declines, showing that concerns extend beyond Germany. Italy’s FTSE MIB has also felt the pressure, though to a slightly lesser extent. Meanwhile, London’s FTSE 100 continues to keep its losses smaller than those of its European counterparts, but that does not mean it is immune to the broader trend.

Focus On The US Market

Beyond Europe, all eyes are on the US. Futures ticking higher may suggest a modest rebound attempt, but the bigger question is whether this holds. The upcoming jobs report in the US could shift expectations on interest rates, and traders will have to navigate the response. With employment data often driving bond yields and central bank outlooks, the implications stretch beyond equities.

Market participants should remain alert in the weeks ahead. Spillover effects from policy debates, moves in US indices, and macroeconomic releases will shape price action. Some shifts are already in motion, and with key data around the corner, reaction patterns will continue taking form.

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France’s trade deficit increased to €6.5 billion in January, as exports dropped and imports rose

France’s trade balance recorded a deficit of €6.5 billion in January, up from the revised figure of €3.5 billion from the previous month. Exports decreased by 4.5%, while imports increased by 1.2%.

In December 2024, the trade deficit improved to €81.0 billion, significantly lower than the record deficit of €162.6 billion in 2022. The evolving trade situation may be affected by upcoming tariffs imposed by the US, which could influence future trade conditions.

Widening Trade Deficit

This widening of the trade deficit suggests that external demand for French goods weakened at the start of the year, while domestic businesses and consumers increased their reliance on foreign products. The drop in exports by 4.5% signals that firms faced a more difficult environment abroad, whether due to weaker purchasing power in key markets, currency fluctuations, or shifts in global supply chains. At the same time, the 1.2% rise in imports points to steady or rising demand within the country, which may be adding to cost pressures, depending on sourcing trends.

Looking at the broader picture, the narrowing of the annual trade deficit in December 2024 compared to two years prior shows that earlier imbalances in international trade flows have eased to some extent. The reduction from €162.6 billion in 2022 to €81.0 billion reflects adjustments in sectoral competitiveness, shifting consumption habits, or policy measures aimed at correcting past shortfalls. However, the recent deterioration in January could indicate that sustaining these improvements will not be straightforward.

With new tariffs from the US on the horizon, the outlook for cross-border trade will depend on how French industries adapt. Certain sectors may find themselves at a disadvantage if higher costs erode their ability to compete in export markets. For those reliant on imports, price shifts could influence purchasing decisions or supply chain arrangements. This added layer of complexity requires attention, as businesses reassess pricing strategies and sourcing options in response to policy shifts abroad.

Financial Market Reactions

Given these changes in trade flows, movements in key financial instruments may reflect shifts in sentiment as markets digest the latest data. As figures for the following months emerge, they will provide greater clarity on whether the January decline was an isolated development or the start of a broader trend. Those watching closely may find opportunities in the pricing of future expectations, particularly in responses to new trade policies that could reshape competitive positioning across sectors.

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In early European trading, Eurostoxx futures dropped by 1.1%, with the DAX down 1.3%

European stocks are experiencing early declines, with Eurostoxx futures down by 1.1%. This decrease follows notable declines seen in Wall Street overnight.

German DAX futures have decreased by 1.3%, while French CAC 40 futures are down 0.7% and UK FTSE futures have fallen by 0.6%.

Market Volatility In Europe

Yesterday, European stocks had remained relatively insulated from market volatility, preparing for today’s adjustments. The DAX has faced volatility this week due to recent political developments in Germany. Despite the anticipated decline, the DAX is expected to finish the week with around a 4% gain.

These early declines come after a turbulent session in the United States, where markets closed notably lower. The pullback in European futures suggests traders are now reacting to broader concerns that had already weighed on Wall Street.

German equities, which have been particularly sensitive to political shifts, continue to show pronounced movements. Recent developments in Berlin have added uncertainty, contributing to the fluctuations seen earlier this week. Even with today’s retracement, the week’s net position for German stocks remains positive, highlighting the upward momentum observed in prior sessions.

France’s market has been more stable in comparison, with losses in CAC 40 futures appearing less pronounced. The reaction in France is more measured, as domestic concerns have not had the same immediate market impact. Similarly, UK futures are reflecting a retracement, though less severe than in Germany. London’s market has held relatively steady in recent days, with declines today following global sentiment rather than local factors.

Assessing Market Reactions

With European indices adjusting to overnight pressures, traders will need to gauge whether early declines will deepen or if buying interest will emerge. The DAX, even with today’s pullback, remains on course for a positive weekly outcome. The ability to sustain this upside by the week’s close will largely depend on how markets absorb further developments and whether support holds at key technical levels.

As these movements unfold, close attention will be required for any shifts in sentiment that could either extend losses or stabilise prices.

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Notification of Trading Adjustment – Mar 07, 2025

Dear Client,

Starting from 9 March 2025, the trading hours of some MT4/MT5 products will change due to the upcoming Daylight-Saving Time change in the US.

Please refer to the table below outlining the affected instruments:

Notification of Trading Adjustment

The above information is provided for reference only; please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact  [email protected].

UK housing prices slightly decreased, with annual growth steady, reflecting market balance ahead of changes

UK house prices in February have decreased by 0.1% compared to an expected increase of 0.3%. The average property price now stands at £298,602, with annual growth remaining at 2.9% from January.

Halifax attributes the slight price drop to changing dynamics in the housing market. As the deadline for stamp duty changes approaches, some previously accelerated demand for new mortgages is beginning to diminish.

Shifting Buyer Sentiment

This decline comes as many had been anticipating modest gains, but a combination of shifting buyer sentiment and broader financial pressures has resulted in a slight dip instead. While annual growth remains consistent with January’s figures, the monthly stagnation suggests demand is starting to be influenced by external economic conditions more than before.

Halifax’s observations align with this. With the clock ticking on stamp duty adjustments, some of the urgency that had been driving mortgage applications earlier in the year appears to be fading. This is not to say activity within the property sector is stalling, but rather that the pace at which buyers are willing to commit is tempering. The immediate rush to secure favourable terms is no longer at the levels seen in previous months, which is having a direct effect on pricing.

The Bank of England’s interest rate stance remains another key contributor to these shifts. Borrowing costs are still higher than the levels seen during periods of rapid house price growth, which naturally limits how much prospective buyers are willing or able to stretch their budgets. This restraint can already be observed in mortgage approvals, which have moderated compared to late last year.

As lenders continue adjusting their offerings in response to market signals, pricing strategies may see further recalibration. Sellers who had initially set valuations based on prior momentum may now be reassessing their positions, especially if demand softens further in the coming weeks. However, with annual growth holding steady at 2.9%, there is no suggestion that broader price trends are reversing—only that short-term adjustments are taking place.

Future Market Trends

For those active in financial markets, these figures give a clearer indication of how sentiment is shifting. If affordability constraints remain in play, further price moderation could follow. At the same time, any changes in monetary policy from the central bank will be watched closely, as they hold the potential to either reignite demand or apply additional pressure.

February’s minor contraction is not an isolated event, but the result of various forces working together. Mortgage availability, buyer confidence, and economic policy all continue to shape how values adjust, and each will remain influential in the weeks ahead. Halifax has already pointed to demand fluctuations, and their impact remains visible in the numbers. Whether this translates into a prolonged slowdown or merely a temporary readjustment will depend on how these factors develop further.

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Can You Really Predict the Market? A Look at Probability in Trading

Identifying the perfect entry point, catching every big move, and knowing exactly when to buy or sell–sounds like a dream right? That’s probably because it is precisely that. Sorry to burst that bubble, but nobody can predict the market with certainty. 

Many factors drive the financial world: political turmoil, natural disasters, central bank decisions, and market sentiments just to name a few. Truth is, no technical indicators or fundamental analyses can consistently tell you what will happen next.

Understanding Probability In Trading

While you cannot predict the future, you can learn how to play the odds. Understanding probability in trading can be the key to long-term success and the trading advantage you need to elevate your trades to the next level.

Why Traders Crave Certainty

Humans are wired to seek out patterns and predictability. 

That’s why we point out familiar shapes in the clouds. Logic and structure comfort us–we want to believe that if X happens, Y will follow. That’s true for most things; if you drop something heavy on your foot, you know it will hurt. The problem is–markets don’t follow fixed rules. 

Season 1 Cloud GIF by The Simpsons
GIF: Unlike whimsical, far-fetched cloud gazing sessions–trading requires accepting that at times, logical outcomes might not be able to be labelled over everything.

A trap that many budding traders often fall for is the sweet-sounding “perfect strategy”–a mythical foolproof system that guarantees wins. They start chasing indicators, fine-tuning their settings, and overanalysing charts, believing that the more it’s refined, the more accurate their systems become.

Soon, they realise that no matter how much they analyse, the market will always be unpredictable in the short term. Trying to forecast every single move with certainty is a Sisyphean task.

Some traders believe that somewhere out there, a 100% accurate strategy exists. They search for strategies boasting 80-90% win rates, thinking they’ve cracked the code. But even the best traders–hedge fund managers, seasoned professionals, and top algorithmic traders–win only 50-60% of the time

Trading: A Game of Probabilities

The market isn’t about being right–it’s about managing probabilities.

Imagine you have a coin weighted to land on heads 60% of the time. You know it has a statistical edge, but that doesn’t mean you’ll win every flip. You might get three tails in a row, but over 100 flips, heads should win around 60 times.

Season 4 Coin Toss GIF by Friends
GIF: Flip, flip–don’t get too focused on the slips.

Trading works the same way. Even a profitable strategy will have losses because no setup is ever 100% guaranteed.

A trader using a 60% win rate strategy must understand that 40 out of 100 trades will be losses. The problem is, most traders emotionally react to short-term losses, abandoning solid strategies before they let probabilities play out.

Why Even Winners Can Lose Sometimes

Even a strong strategy will have losing streaks. If you trade long enough, you’re bound to experience:

  • Five or more losing trades in a row (even if your strategy is profitable).
  • A period where nothing seems to work out for you.
  • A winning streak that makes you overconfident—then suddenly reverses.

Managing Risk Over Win Rate

This is why managing risk will always matter more than your win rate. If a couple of losses in a row breaks your mind and mettle–you might never make it to the winning trades that balance the equation. 

Imagine this: Casinos don’t win every bet, but they have an edge over thousands and thousands of games–over time, the odds always play in their favour.

Backtesting: Not a Magical Crystal Ball

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Germany’s industrial orders for January dropped by 7.0%, contrasting with expectations of a 2.8% decrease

Germany’s industrial orders for January decreased by 7.0%, contrasting with the anticipated decline of 2.8%. The data, published by Destatis on 7 March 2025, revealed a downward revision for December orders from +6.9% to +5.9%.

The fluctuations noted in this report primarily stemmed from a 17.6% drop in orders for other vehicle construction, which includes aircraft, ships, and military vehicles. These variations are commonly tied to military contracts or requests from Airbus.

Manufacturing Sector Concerns

This downturn in orders suggests weakened momentum in Germany’s manufacturing sector. Given that broader industrial demand often reflects wider economic conditions, this shortfall could have implications beyond the immediate figures. The revision for December, while still indicating growth, slightly tempers the previous optimism surrounding the sector’s recovery.

A sharp fall in orders for specialised vehicles, particularly in aerospace, naval, and military markets, points to volatility within these industries. Since these segments frequently depend on bulk contracts rather than steady, recurring demand, numbers can shift dramatically from month to month. The drop seen in January could stem from the absence of large orders rather than a structural decline, but the scale of the decrease is difficult to ignore. Airbus and defence procurement cycles are often unpredictable, and any gap between major contracts can lead to outsized figures like those reported.

With economic sentiment across the eurozone already under pressure, this release raises questions about whether manufacturing growth can be sustained in the coming months. Germany, as Europe’s largest economy, plays a central role in shaping expectations. Should February’s data indicate further weakness, it may reinforce concerns that industrial activity is struggling to maintain consistent expansion.

Market movements in response to this announcement will likely depend on how traders assess the longer-term effects. With external risks, including geopolitical uncertainty and supply chain adjustments, still affecting decision-making, sentiment could remain fragile. Those watching manufacturing-linked assets will need to weigh whether this dip points to a broader downturn or if it reflects short-term fluctuations typical in sectors driven by bulk orders.

Monetary Policy Considerations

Fluctuations of this scale can influence expectations around monetary policy as well. If softer industrial demand persists, policymakers could face additional pressure to consider measures that support growth. However, with inflation concerns remaining in focus, any potential response would depend on whether further economic data aligns with this trend.

The upcoming weeks should provide greater clarity. February’s data release will be closely watched to determine if January’s decline marks the start of a pattern or merely a temporary adjustment. Broader economic indicators from Germany and the eurozone will also play a role in shaping sentiment. Until stronger signals emerge, uncertainty may keep markets on edge.

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