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The yield gap between Italy and Germany has reappeared in an area of 300 basis points and the markets are not certain of the direction to take in a particularly challenging environment for the future. global economy and finance, including Brexit, the trade war and the fierce struggle for public accounts. Italians and the global economic recovery in maybe. In Europe, the main trading session is uncertain, while in Asia, the action is positive but without great momentum, with the exception of Beijing, which yields around 1%. The market hopes that Beijing will take steps to support the economy. In addition, the challenge posed by tariffs between the two leading powers in the world creates peace. Traders have recently struggled to decipher contrasting signals about the prospects for the US trade dispute. But the idea that Donald Trump and Xi Jinping dine together on Saturday is an event that represents for the White House "A great opportunity", promotes the feeling.
On the other hand, in the secondary bond market, two-year BTPs have come a long way in the last few sessions as a result of the government's opening up to the EU from a budgetary point of view. Yields lost 80 basis points in a few days from the time the green-yellow executive declared that it was ready to respond to some of the European Commission's demands regarding the GDP deficit ratio and measures considered too broad and compromising stability. public debt, the third highest in the world. However, the vice president of the EU executive body, Valdis Dombrovskis, did you know interviewed by La Stampa that the correction to be made to the Finance Act must be even more substantial than that proposed by Italy.
Meanwhile, in the United States, people are beginning to fear a slowing of phenomenal growth in America in recent times. Trump's fiscal stimulus will fail and the labor market is particularly "tense" (rare supply). So much so that we come back to talk about Phillips Curve, the theory that the relationship between unemployment and inflation is very strong and inversely proportional. In the United States, the unemployment rate fell to its lowest level since October 1969 and inflation began to overheat. This situation worries investors who generally prefer not to take too many risks and close some risky positions before the end of the year.
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