With local economies throughout the region rebounding, the European Union (EU) is expected to post another year of solid growth, potentially providing investors with compelling opportunities along the way. Those factors could increase the allure of the Direxion Daily FTSE Europe 3x Bull Shares (NYSEArca: EURL) for short-term traders.
EURL tries to deliver triple the daily performance of the FTSE Developed Europe All Cap Index, a benchmark that tracks large-, mid- and small-cap companies throughout developed Europe.
“The European Union is experiencing an unfamiliar optimism as 2018 takes shape and the Euro begins to show signs of an upswing against a falling dollar, pound and renminbi,” said Direxion in a recent note. “A large part of the enthusiasm in Europe comes from the fact that the European Union’s 19 member nations posted a combined GDP growth of 2.5 percent over 2017. Suddenly, for the first time in a long time, everything’s coming up Eurozone.”
The economic growth in the Eurozone hitting its highest level in almost seven years was attributed to near-record expansion of manufacturing production and the steepest increase in service sector activity in over six-and-a-half years, according to MET Newswires.
IHS Markit revealed that its purchasing manager index spiked to 58.1 in December from the previous month’s 57.5, according to the Associated press. The Eurozone economy has withstood headwinds, largely heightened political risks in an election packed year, and managed to push through solid growth for 2017.