The world financial markets remained on Thursday in a radical readjustment phase After the shock of the president of the United States, Donald Trump, to transatlantic relations caused A seismic change of half a billion euros in German spending in defense and infrastructure.
The European Central Bank prepared to cut their interest rates later in the day.
The yields of the German BUND at 10 years rose 10 basic points, to 2.88%, after having reached 2,929% on Wednesday. The euro operated at 4 months maximum, while European stock markets also took a break after a 10% rise this year.
Germany: the bonds resist the changes decided by the government
“The reality is that still I do not believe that the enormity of the news (German) has approached to be completely understood And digested by global investors, “said Jim Reid, of Deutsche Bank, who estimated that the BUND performance rebound on Wednesday was the largest movement since German reunification.
Global implications became evident during the session in Asia. The 10 -year Japanese public debt yield, another key factor of indebtedness costs in the world, reached a maximum of almost 16 years And the 10 -year American treasure bond performance also rose for the third day despite the growing bets on more features of the Federal Reserve.
Attention also focused on the World Trade War after the imposition on Tuesday of US Tariffs 25% to imports from Mexico and Canadatogether with new tariffs on Chinese products, which fueled fears about economic growth.
But on Wednesday, the White House said President Trump would exempt Mexican and Canadians from the tariffs of their countries for a monthas long as they comply with the existing free trade standards.
That led to US actions to rise strongly and propped up the Asian markets. The largest MSCI index of Asia-Pacific shares outside Japan rose 1.25%, while Tokyo’s Nikkei finished 0.8% upwards.
The Chinese index rose 1.4%, while HANG Kong Hang seng won more than 3%reaching its highest level in three years. So far this year, the Hang Seng has risen 20%, which makes it, by far, the most profitable stock market in the world.
The euro operated stable above $ 1.08, just below the maximum of four months it had reached in the first Asian operations. The single currency is aimed at a rise of more than 4% this week, its highest weekly performance since March 2009.
Source: Ambito
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