Volatile bonds, a confidence crunch and the ECB meets
This week, two types of stories dominated the speech in the news room.
WaterComeer favorite? The antiques of high -profile CEOs are separated from Nestle’s boss through an unidentified relationship with an sub -sub -substance and the separation of SunToras through the resignation of the CEO Possible purchase of illegal substances Both create excitement in London and Singapore news rooms.
However, what kept the news tables the most intense was the bond market volatility that could spread well at the next week. In the last few days, we have received a series of guests who have shared some of the most important yield movements seen in the UK Gilding market and throughout Europe.
And more may come next week …
No trust or trust, this is the question
The uncertainty of yield in the European bond center is France.
On Monday, the government called the Prime Minister Francois Bayrou will have a vote of confidence – almost certain that the ruling party will lose.
Photo: Cuellar | Flickr | Getty Images
Competitors France Insoumise, the national rally and socialist party claimed that they would vote against the government. This increases the likelihood of President Emmanuel Macron to make a instant election, but another centralist guard will try to appoint the government.
In a wicker customer survey, Nomura found that French government bonds – or oats – should act more dramaticly to cause “a major loss of international investor confidence”. In a note, the Bank pointed out that Fitch’s sovereign debt was examined by Fitch’s next rating, as it was a key date to be watched on September 12th.
To stay in ECB ‘deliberately informative’
This week, another bending point will come when the ECB meets in the midst of the increasing market volatility on Thursday.
The Central Bank is expected to keep the proportions as 2%, estimates that HSBC president Christine Lagarde’s “Dovish prejudice” will continue. The ECB himself emphasized the need for staying in July, “the policy meeting in July” the need to deliberately ignore the decisions of future interest rates “.
Market observers expect Lagarde to question the uncertainty in France during the press conference, but economists estimate that they will avoid direct answer.
Economic data:
Monday: German Trade Data
Tuesday: French Industrial Production Data
Thursday: US inflation data
Friday: German inflation data, England GDP data
