Watch out for a euro zone economic bounce back
STOXX 600 unchanged
China bounce loses steam
VW starts pay talks with unions
Nasdaq futures dip
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
WATCH OUT FOR A EURO ZONE ECONOMIC BOUNCEBACK
Investors shouldn't ignore the possibility of meaningful economic stimulus in Europe, despite the political challenges, said Jon Levy global strategist at Loomis Sayles, particularly as the economic situation worsens.
Euro zone economic data has been grim, especially in Germany, the bloc's economic heart, where this week's PMI data showed business activity in September contracted at its sharpest pace in seven months, suggesting the economy has tipped into recession.
"The worse things get, particularly in the German manufacturing sector, the chance of a counter offensive grows."
"If you wake up one day and even 10% of what was incorporated in the Draghi report is announced, things could move quickly the other way," Levy told reporters, saying this was a risk for those biased towards a weak euro.
While the common currency has risen steadily in recent months and is holding above $1.10 this is still weak by historical standards. EUR=EBS
Former European Central Bank chief and Italian prime minister Mario Draghi said earlier in September in a long awaited report that the EU needs far more coordinated industrial policy, more rapid decisions and massive investment, though analysts said scepticism by some governments, particularly in Germany could hinder the proposals.
As for bonds. "I don't think that European government bonds really price the prospect that you get some sort of fiscal reaction," Levy said.
He said this would require investors to add term premium into curves - i.e. higher yields on longer dated bonds based on the possibility of higher central bank rates in the future.
(Alun John)
*****
EARLIER ON LIVE MARKETS:
IS THE TIDE TURNING ON EUROPEAN CYCLICALS? CLICK HERE
STOXX OFF TO MUTED START, SAP HIT CLICK HERE
CHINA BOOST SET TO FADE IN EUROPE CLICK HERE
AFTER CHINA'S STIMULUS SUGAR RUSH CLICK HERE
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
