After an enormous run up for the euro in 2017, yesterday the currency had its worst day of 2017 losing almost 1%. This came after the election results in Germany which worried investors as it seems hard to form a coalition. Investors fear this could weigh on economic growth in Germany as well as in Europe. The rise of the euro in 2017 was partly due to expectations there would finally be more integration in the eurozone, also on fiscal grounds. This might be thrown back by the election result in Germany. Yesterday evening Merkel's party (CDU) became once again the biggest in Germany. However they suffered a big loss and the coalition party is well. Their coalition partner already announced they won't form a government with Merkel again. Furthermore the far right party, which wants Germany to leave the Euro, became the third party in the Netherlands. Reactions in stock markets we're wild with Euro losing a bit but equities still gaining. Minister of Foreign Affairs told the press this morning that North Korea might be on the verge of testing a Hydrogen (Nuclear) Bomb in the Pacific Ocean. This comes after several tests they did the last few weeks and months. Tensions worldwide, and especially in the US and Japan are rising. Trump told in his UN speech that he might destroy North Korea completely. Janet Yellen gave a speech last night mentioning no changes in interest rates this month. Hints we're there that there could be one rate hike this year, and more to come in 2018. Starting in October the balance sheet will be rolled off slowly. Only due a major detoriation of the US economy this can be undone, otherwise the balance will sheet will shrink 10 billion US$ a month and going up to $50 billion a month. |
PurposeMajor markets news headlines which captured the markets. Archives
March 2021
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