European bond markets sold off as stock markets bounced. Bundesbank President Nagel warned yesterday that central banks must not respond to higher inflation with “too little, too late” and that “if monetary policy falls behind the curve, even stronger hikes in interest rates could become necessary to get inflation under control” which would lead to higher economic costs. German Ifo business confidence numbers came in weaker than expected this morning, which together with the disappointing PMI reports yesterday added to recession fears, but for now stock market sentiment is looking a bit brighter.
Click here to access our Economic Calendar
Stuart Cowell
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
