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Germany woke up to a grey sky this morning. Its exports slumped by a significant 5.2% in month of August. The slowdown in China, which stands for 10% of German exports, is dangerously creeping in. Rising euro is also pulling away some support from German products in terms of price competitively. At a time when German companies are also suffering from reputational risk following the Volkswagen scandal.
European investors are talking about Deutsche Bank expecting EUR 5.8 billion write down in its investment bank division and predicting EUR 6.2 billion worth of loss in Q3. Bank’s board recommended a cut or even a possible elimination of dividend for FY2015. Despite unpleasant news, Deutsche bank stocks opened only 3% lower and quickly reversed early losses, shareholders seem comfortable receiving fewer dividends in exchange of a more adequate capital buffer.
It is sad to say but Europe’s most powerful economy is going sour. Negative pressures in German stocks are here to stay and the murk could well spill over the entire European markets. Capital is flowing into Eurozone sovereign bonds this morning as euro keeps on climbing. It looks like Draghi will be given no option other than to react. And even Bundesbank will likely be less of an opposition.
European markets look set to turn lower at the start of trading on Monday. The new US and Chinese tariffs take effect today so traders in Asia and Europe look cautious. Both continents are more exposed to global trade than the US. For markets, the new tariffs …Read more
Whilst risk sentiment has been healthy across the week, this swelling optimism boosted US stock markets to an all-time high overnight. A rally in tech stocks, which have done a lot of lifting for the indices over the year, in addition to fading concerns over U…Read more
Despite a shaky end to trading on Wall Street overnight, which saw the Dow gain 0.6%, the S&P just 0.1% and the Nasdaq slip by the same, Asian markets moved broadly higher on improved sentiment. European bourses are taking the lead from the US over Asia, w…Read more
Asian markets took the lead from Wall Street overnight, rallying as the latest tit for tat measures in the escalating trade spat have not been quite as severe as the markets had been expecting. Tech stocks were also heavily in demand, bouncing back after steep…Read more
Traders are faced with a sea of red in risk-off trading as markets are set to open on Tuesday. Despite the fact the market has been expecting an escalation in trade tensions between the world’s two largest economies with further tariffs from Trump; the reality…Read more
Escalating trade tensions will once again be a central theme to driving sentiment and trading this week, with President Trump widely expected to levy tariffs on a further $200 billion worth of Chinese imports, potentially as soon as today. The elevated trade c…Read more
European bourses are set to take the lead from a positive session on Wall Street and Asia overnight. A drive higher from tech stocks on Wall Street helped lift Asian equities after their recent battering, pulling them off 2-year lows.
Asian markets were endin…Read more
Today will be a busy day for traders with 2 central bank rate decisions and US inflation data all due for release within a few hours of each other. The BoE monetary policy announcement will kick things off, followed shortly after by the ECB rate announcement a…Read more