Euro zone bond yields jumped on Monday amid fears about surging inflation, with investors trimming their positions after buying aggressively last week. Safe-haven German bond yields fell more than 20 bps last week in their third-biggest weekly drop this year as limp German Ifo data raised fears of a sharp economic slowdown as traders bought debt aggressively after weeks of selling.
Sterling fell versus the euro on Monday and flattened against the dollar amid more post-Brexit tensions and persistent economic growth worries in Britain. British Prime Minister Boris Johnson said on Monday parliament could pass legislation this year to scrap some of the rules on post-Brexit trade with Northern Ireland that his government agreed in 2020 with the European Union.
Euro zone yields jumped on Monday with investors rebalancing their portfolios amid fears about surging inflation. "Sure, there are worries about consumer price numbers. The euro area's Harmonised index of consumer prices will be released later this week.
Technology investor Prosus NV will tap its huge stake in China's Tencent (TCTZF) to fund a stock buyback in itself and parent Naspers, the Dutch firm said on Monday, knocking shares in the Chinese tech giant. The move is aimed at closing a gap between the market value of Prosus/Naspers and that of the 28.9% stake in Tencent (TCTZF) they own, which is currently worth about $136 billion.
All leaders of the Group of Seven rich democracies are concerned about a looming economic crisis as growth slows and inflation soars, German Chancellor Olaf Scholz said after a working session on the global economy at this year's annual G7 summit.
Safe-haven German bond yields were set for their first weekly fall since mid-May on Friday after growth fears gripped markets, though they reversed some of the drop after a German business sentiment survey indicated a recession was not yet in sight. Prior to this week, yields had risen sharply in the face of red-hot inflation and aggressive central bank rate hikes.
* S&P futures up 0.9%, European stocks gain 1.5% * MSCI world stocks eyeing 2.5% weekly rise. * Copper falls more than 7% on week, oil down 2% * German 10-year bond yields drop 4 bps. * By Carolyn Cohn.
The German government is considering converting parts of the Nord Stream 2 gas pipeline into a connection for a liquefied natural gas terminal on the Baltic Sea coast. Magazine Der Spiegel reported on Friday that the German economy ministry is considering expropriating the part of the pipeline system located on German territory and cutting it off from the rest of the pipeline.
The German government is considering converting parts of the Nord Stream 2 gas pipeline into a connection for a liquefied natural gas terminal on the Baltic Sea coast. Magazine Der Spiegel reported on Friday that the German economy ministry is considering expropriating the part of the pipeline system located on German territory and cutting it off from the rest of the pipeline.
German business morale fell more than expected in June but a recession was not yet in sight despite rising energy prices and the threat of gas shortages, a survey showed on Friday. The Ifo institute said its business climax index dropped to 92.3 following a reading of 93.0 in May, when the closely watched indicator posted a surprise recovery despite the economic impact of the Russia-Ukraine war.
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