Al -Shark Al -Avasat Newspaper -European Bond Earnings Increase With Diminishing Deduction Betting
After the US administration’s peace of trade war with China, government bond earnings in the eurozone rose on Wednesday, with the European Central Bank to cut interest rates in the light of their expectations.
According to Reuters, it was usually stabilized following the data set that showed that business growth in the euro area had stopped.
On Tuesday, US President Donald Trump withdrew his threats to dismiss the head of the Federal Reserve Jerome Powell, a few days after the lack of interest rates. In this case, Treasury Secretary Scot Besant has said that he hopes that trade tensions between the United States and China will soon be declining.
“Trump seems to have returned from two wars that he could not win: with China and Pavels,” said Mohit Kumar, chief economist in Europe at Jeffrez. “Although this does not mean that it does not continue to criticize (the Federal Reserve), the markets should be relieved of the risk of short -term negative effects.”
Recently, the US sources have seen the US sources in favor of the Euro -run euro in the fear of trade war between the United States and China, along with Trump’s criticism of Trump’s criticism of the dollar, in addition to the concern that the dollar will weaken the backup currency.
German Treasury Bonds have returned 10 years, with standard standard in the euro in the area of 3.5 basis points to 2.48 %. On the other hand, long -term US Bond revenue in London’s transactions has fallen; Where the income of ten years of bonds has fallen by 4 basis points, after they declined on Tuesday, Trump’s trade policies prompted to buy some investors to buy American bonds amid fears that American economic slowdown could lead to American economic slowdown.
Market estimates suggest that the interest rate of deposit facilities at the European Central Bank will reach 1.6 percent in December, which increased from 1.55 percent at the end of Tuesday, but it was recorded before the last week’s monetary policy meeting.
The European Central Bank has cut interest rates for the seventh time this year, warned that economic growth will be greatly affected as a result of American customs duties, which strengthened expectations with higher cash facilities.
German bond revenues for the most sensitive two years for the interest rates of European Central Bank rose to 1.72 percent, which rose to 1.72 percent on Tuesday, the lowest level from October 2022.
On the other hand; The difference between the return of French and German bonds for 10 years has reached 75 basis points, and in the midst of its circulation from the beginning of June, French President Emmanuel Macron has advanced the initial election idea. Kumar believes that despite political stability, many French investors believe that the early elections will become a more realistic opportunity this year.
In relation to Italy, the difference between Italian and German bonds has declined to 114 basis points over 10 years.
