Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Indexes  >  Xetra  >  DAX    DAX   DE0008469008

DAX (DAX)
My previous session
Most popular
SummaryQuotesChartsNewsAnalysisHeatmapComponents 
News SummaryAll newsNews of the components ofTweets

Euro zone bonds sailing into weekend of risk events

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/02/2018 | 05:26pm CEST
Presentation of a new 2 Euro commemorative coin in honour of former German Chancellor Helmut Schmidt

LONDON (Reuters) - Germany's 10-year government bond yield hit a five-week low on Friday, as an Italian election and a milestone in German coalition politics this Sunday together with worries about a global trade war boosted demand for safe-haven debt.

Italian bond yields fell to a three-week low, pushing the gap over German peers to its tightest in two weeks and suggesting some confidence among investors heading into Sunday's election.

U.S. President Donald Trump on Thursday announced plans for hefty tariffs on imported steel and aluminium to protect U.S. producers. That stoked concerns about a trade war, rattling stock markets and pushing U.S. and European bond yields down.

The worries sparked a broad sell-off in European stocks, weighing particularly on the export-oriented German DAX index, which fell 1.8 percent to a six-month low.

In the euro zone, the focus turned to two potentially major risk events this weekend.

On Sunday, Italians vote in an election that is expected to result in a hung parliament, with former prime minister Silvio Berlusconi's alliance of centre-right groups emerging as the largest bloc, while 5-Star looks certain to be the biggest single party.

Germany on Sunday gets the result of a ballot of Social Democrat (SPD) party members on a coalition deal with Chancellor Angela Merkel's conservatives, the outcome of which could seal or end Merkel's hopes for a fourth term in office.

"The base case we have is that we get through Italy with some sort of broad coalition that is market friendly, that Germany resolves its government situation and then there's two years where some of the larger European questions can be solved," said Mark Haefle, global chief investment officer at UBS Wealth Management.

Most euro zone bond yields were down 0-2 basis points.

Germany's benchmark 10-year Bund yield dropped to as low as 0.606 percent <DE10YT=RR> -its lowest level since late January- before inching up to 0.639 percent in late trades.

It has fallen almost 20 bps from more than two-year highs hit last month and is set for a fourth straight week of falls. Weak inflation data this week has helped reassure bond investors that an interest rate rise in the bloc remains some way off.

ELECTION, NO SWEAT

Italy's 10-year bond yield fell three bps to as low as 1.983 percent <IT10YT=RR>, its lowest level in 3 weeks. That pushed the gap over German peers to around 138 bps, also its tightest in almost two weeks. It rose back to 2.02 in late trades.

The spread - a key gauge of how investors view relative country risks in bond markets - has narrowed around 10 bps this week - a sign that investors are relatively comfortable holding Italian debt.

"Markets are more comfortable with political risk this time around compared with prior elections.. the political risks we've had over the past few years turned out to be quite benign," said Iacopo Dalu, a research analyst at Janus Henderson Investors.

"It is unlikely that we are going to wake up on Monday morning with a very bad outcome -- the tail risks are limited."

(This version of the story refiles to add graphic.)

(Reporting by Dhara Ranasinghe; additional reporting by Fanny Potkin Editing by XXX)

By Dhara Ranasinghe

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DAX
09/21EUROPE MARKETS: Europe Stocks Score Strongest Weekly Win Since March, Lifted ..
DJ
09/20EUROPE MARKETS: Europe Stocks Post 5th Straight Gain For Longest Win Streak S..
DJ
09/20EUROPE : European shares add to gains as trade war fears fade into background
RE
09/19EUROPE MARKETS: Europe Stocks Book Fourth Win In A Row
DJ
09/18EUROPE MARKETS: Europe Ends Day Muted After Session Dented By Trade-war Headl..
DJ
09/17EUROPE MARKETS: H&M's 17% Stock Surge Is A Bright Spot For Europe's Stock Ind..
DJ
09/17EUROPE : European stocks keep steady amid tariffs fears; H&M surges
RE
09/14EUROPE MARKETS: Europe Stocks Finish Week Stronger, But Danske Bank Comes Und..
DJ
09/13EUROPE MARKETS: European Stocks End Lower As Central Banks Grab Spotlight
DJ
09/13EUROPE : New trade talks revive European stocks, momentum slows
RE
More news
News of the components of DAX
02:18pSIEMENS NEARS MULTI-BILLION EURO DEA : Handelsblatt
RE
02:15pVOLKSWAGEN : Porsche to stop offering diesel models
RE
01:20pVOLKSWAGEN : Porsche to stop offering diesel models
RE
09/22DAIMLER : Paul Di Resta takes championship lead from Gary Paffett
PU
09/22BAYERISCHE MOTOREN WERKE : 300th DTM race for BMW in Spielberg – Three BMW..
PU
09/22BAYER : Receives Positive CHMP Opinion for Its Hemophilia a Treatment BAY94-9027
AQ
09/22BAYER : Jivi Approved in Japan for Hemophilia a
AQ
More news
Chart DAX
Duration : Period :
DAX Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DAX
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Top / Flop DAX
E.ON 8.992 Delayed Quote.3.64%
SAP 104.1 Delayed Quote.2.42%
BASF 81.63 Delayed Quote.1.63%
DEUTSCHE BANK 10.536 Delayed Quote.1.60%
LINDE 212.2 Delayed Quote.1.39%
RWE 21.34 Delayed Quote.-0.56%
VONOVIA 41.77 Delayed Quote.-1.04%
COVESTRO 72.42 Delayed Quote.-1.12%
FRESENIUS MEDICAL CARE 86.92 Delayed Quote.-1.20%
INFINEON TECHNOLOGIES 20.1 Delayed Quote.-1.37%
Heatmap :