Parts of Europe are under attack – and we’re not talking about politics or terrorism. A major heat wave called ‘Lucifer’ is sweeping through areas of Europe and pushes temperatures to record highs.
In Belgrade, Serbia, temperature reached as high as 39 degrees Celsius (that’s 102.2 degrees in Fahrenheit). Romania, Croatia and certain areas of Italy and France are also experiencing unbearable heat. In some parts of Spain, the national weather service predicts that temperature would reach as high as 44 C (111.2 F). Slovenia reported the first-ever ‘tropical night’ at 1,500 meters. What’s a ‘tropical night’? It means that temperatures exceeded 20 C (68 F) during nighttime.
We’ve often discussed how weather can impact the market, but when you think of Europe, the so called ‘extreme weather conditions’ always seem to be involving snowstorms, excessive rain and unusual cold. It is interesting to note that the continent is even less equipped to deal with extreme heat, making it more vulnerable to this type of weather.
How can extreme heat impact a country’s economy? Well, for starters, consider wildfires. Then there’s the strain on energy and water usage. Another major impact can be potential damage to agricultural crops such as wheat and sugar – and that’s even before we venture into the territory of loss workdays. In some parts of Europe, authorities have banned outdoor work in specific hours and issued traffic restrictions. In Serbia, a train service was delayed after tracks actually buckled due to the scorching heat.
For many online traders, weather is a major factor to consider, since it can potentially affect many instruments, industries and even entire economies. At times, the weather channel could be just as indicating as major economic reports. Collect information, stay informed and stay ahead of the market.