Concern around the growth of the world economy and the threat of new tariffs for EU on the US side hold investors from active purchases of profitable assets. In the debt markets remain the trend to reduce the profitability of the long-term bonds of developed countries: dropped to 1.95%, and update the historical lows at -0.37%. In the debt markets remain the trend to reduce the profitability of the long-term bonds of developed countries: dropped to 1.95%, and update the historical lows at -0.37%. This should be seen as a sign of concern regarding long-term growth, despite the expectations of incentives in the short term.
The profitability of American and German bonds has reduced
The American held Tuesday near the opening levels and only at the end of the bidding process returned to the highs. We have repeatedly pointed out that this is a good signal for the stock since it reflects confidence in the prospects on the part of the professional investors. Nevertheless, the incidence of return on the debt markets of alarming, customizing a possible correction rolling stock exchanges in the coming days.
The single currency on Tuesday has made unsuccessful attempts to return above 1.1300. Nevertheless, by the end of the day of purchase of the dollar intensified by returning the EUR/USD to levels two weeks ago. Today goes a lot of the PMI index in the services sector, which will once again compare the dynamics of the U.S. economy and the EU, potentially affecting the couple. Production data from the Euro Zone on Monday came out weaker expectations, while Americans managed to stay in positive territory and exceed the forecasts. All this led to pressure on the pair. A similar divergence of data can strengthen the downtrend on the EUR/USD.
The British pound risks becoming another victim of the “pigeon” turn in the rhetoric of central banks. In yesterday’s speech, the head of the Bank of England noted the increasing risks for the British economy in connection with the global trade wars and the completion of the Brexit without a deal. As a result of the pair GBP/USD failed by 0.4% to 1.2580. More and more central banks of developed countries get involved in a soft version of currency wars, reducing the rate or promising these measures in the very near future.
Dollar takes away from the ruble recent losses
The rouble develops systematic deviation in pairs with the US dollar and the euro. So, on Wednesday morning trading near 63.55, adding 23 cents since the start of the day and returning to the levels of the two-week period. adds 20 kopecks before 71.62, although at the global currency market rolling euro against the US dollar in the area of two-week lows.
That is, the ruble loses the position in both the key currency pairs. External background quite a complicated task. The relatively positive for the ruble is the situation with the S&P 500, which updates in the morning on Wednesday its global maximums, and the European, which tries to climb above the 11-month peaks.
This demand for shares – the risky assets – supports the purchase of Russian Securities, also a few constraining the retreat of the rouble. On the other hand, failed at 3.5% of the bidding process on Tuesday and Wednesday morning remains under pressure, the bargaining at $62.37. The ruble is now not so close connection with oil, a few years ago, but the participants of the debt markets are held on the periphery of the attention to this dynamic.
Thus, the sudden failures in the price of the black gold still negatively affect the ruble, and these failures in the last time, it is becoming more and more. In the world of debt markets trend is to reduce the profitability of that looks alarming signal a weakened economy and several runs counter to the trend of shares. Judging by the fact that the world central banks are increasingly talking about the need for new incentives, profitable venture ahead of assets difficult times.