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Eur is falling as German bunds hit record highs and stocks plummeted

2019-05-31 11:47 am | Resource: NEWS | No Views : 141

Eur is falling as German bunds hit record highs and stocks plummeted

 US President Donald Trump's decision to escalate the dispute with Mexico over illegal immigration by imposing a 5 percent tariff on goods from neighboring countries raised investor aversion to risk on Friday. Apart from escaping to relative safety of the Japanese Yen, major government bonds benefited most, with yields reaching new lows.

While the Japanese yen also benefited from risk aversion, supported by the current trade war with China.

DAX is down 2% as US trade wars scare markets

The German benchmark index fell 1.77% at 1:15 pm CET to 11691.52 points, after reaching 11,662.07 points for the first time since April 2. Wirecard remained at the bottom of the heap, bleeding 10.37%. Followed by the automotive sector and Volkswagen down more, 4.12%. Car manufacturers, already experiencing a large decline in manufacturing, will be particularly affected by the new procedures.
  • The FTSE 100 index was down 1.03% in London at 7,143.7 points, compared with the session at 7130.85, not seen since March 11.
  • France's CAC 40 lost 1.56% to 5,167.05 points, after falling to 5,160.91 points, the weakest since Feb. 20.
  • The Italian FTSE fell 1.53% to 1,642.37. The day fell to 19.535.5 points, the lowest level since February 11.

The yield on ten-year German bonds is looking for a record

The 10-year rate in Germany, which spent most of the month below zero, fell by 2.4 basis points to 0.195% negative at 8:48 CET. The last drop was on July 6, 2016, when it hit a record low of 0.205%. The futures contract rose 0.12% as shares in Europe fell ahead of the opening bell. The euro zone's biggest economy is weak, with manufacturing shrinking. Bonds also rose with Italy's renewed budget with the EU.

The yield on two years fell 2.3 points to 0.66% under the neutral sign, yield on 30-year bonds fell 2.7 points to 0.443%. Futures futures rose 0.02% and 0.37%, respectively.

EUR trades against major currencies
  • The Euro was trading lower at 121.250 against the Yen.
  • The euro fell against the franc to 1.1207, shedding 0.22%.
  • The euro rose against the British pound to 0.8857, gaining 0.13%.
  • The euro rose to 1.1143 against the dollar at around 11:02 CET.

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Best Opportunities, Vision and Technical Analysis for the USD/JPY pair 17 April 2019

We offer you the analysis of the US dollar against the Japanese Yen on Wednesday, April 17, 2019 with the most important expectations for the dollar against the Japanese yen on the market. Time frame Used - four hours The USD/JPY is moving in a bullish direction in the near term. USD/JPY is still facing resistance and selling pressure around 112.10 as the USD-JPY closed yesterday's session down below 112.00…

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