The traditionally illiquid post-Thanksgiving week has started with a series of whipsaws across stocks and bonds, as European stocks turned positive after starting the day on the back foot, initially mirroring a slide in Chinese stocks and price action in U.S. equity futures as investors look to a possible - and absolutely critical - tax-plan vote in the Senate this week.
Yesterday's China stock market rout, in which the Shanghai Composite tumbled the most since June 2016 to three month lows, and which prompted traders to question the dedication of Beijing's plunge protection team, appears to have been forgotten, with the Composite closing unchanged on Friday after some early session weakness, as Chinese yields declined broadly across the board from 3 years highs.
The Euro has jumped to a six week high following the latest record high print in the German IFO Business Climate index, which rose from 116.7 to 117.5 (exp.
Angela’s Merkel’s ability to restore her power in Germany should be decided in the next few days, as talks take place with Martin Schultz’s SPD.
In the meantime, Merkel’s ratings have unexpectedly “tanked” in the latest German polls. More than half of Germans believe she should not run for office in a poll conducted for t-online.com, as the Daily Express reports.
Brexit budget - Grim outlook as UK economic forecasts downgrade