Trade the return to shape of Europe after Omicron with EURL
EEurope was quick to return to lockdown mode after the first appearance of the Omicron variant, but when the effects of the pandemic subside, traders can play the game. ETF Direxion Daily FTSE Europe Bullish 3X (EURL).
As more medical data is released regarding the severity of the Omicron variant, European markets may rebound. As the Christmas holidays approached, the pan-European Stoxx 600 index was already up as investors increased their risk appetite.
“Investors have responded to a study done in South Africa – where the omicron strain was first discovered – suggesting a reduced risk of hospitalization and serious illness compared to the Delta,” he added. CNBC Reports. The study, which has not yet been peer-reviewed, found that people diagnosed with omicron in South Africa in the two months to November were less likely to be hospitalized than if they caught another variant. during the same period. “
The EURL, up over 40% over the year, seeks daily investment results equal to 300% of the daily performance of the FTSE Developed Europe All Cap Index. The index itself is a market capitalization weighted index designed to measure the performance of the equity market of large, mid and small capitalization companies in developed markets in Europe.
Playing bullish in the United States
The positive news regarding the seriousness of the Omicron will certainly affect the markets in the United States as well. Investors will also raise the risk dial by 2022 as more data comes to light, which could boost major stock indexes like the S&P 500.
“These glimmers of hope have boosted global equity markets,” adds the CNBC report. “Across the Atlantic, the Dow Jones and other major US averages have all risen as investors look past previous nervousness about the omicron.”
This will certainly help bullish traders on the S&P 500. That said, an ETF that they can play to amplify their gains if they go up is the Direxion Daily S&P 500® Bull 3X equity ETF (SPXL).
SPXL offers triple exposure to the S&P 500 Index. It invests at least 80% of its net assets in financial instruments, such as swap agreements and index securities, ETFs that track the index and ” other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index.
For more news, information and strategy, visit the website Leveraged and reverse channel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.