Dhe President of the European Central Bank (ECB) has pressed the euro exchange rate and the yields of European government bonds with a speech. At a central bankers' meeting in Portuguese Sintra, Mario Draghi announced his willingness to further relax the already expansive monetary policy in the monetary union, should this be necessary.
The market is now even speculating about a rate cut by the European Central Bank later this year. The yield on ten-year Bunds fell to a record low. Austrian government bonds with the same maturity had a negative yield for the first time, Finnish and French also, as well as the name of the EMS rescue fund. Yields on Greek and Italian bonds also fell significantly.
By contrast, the German stock index Dax rose slightly to 12,800 points. The shares of energy providers in particular gained on the stock exchange. RWE's share price rose 3.6 percent and Eon's 2 percent gain. Utilities stocks are considered an alternative to bonds because of their generally stable dividends.
The speech Draghi and the exchange rate response called in turn the American President Donald Trump on the plan. "Europe's markets are rising on the basis of comments (unfair to the United States) of Mario D. today," wrote Trump. Draghi had just announced further measures that would offer the Europeans an unfair advantage over American competitors – they were too long "get away, together with China and others."
"The main rival for the United States is China. The ECB is a secondary theater of war, "commented Commerzbank chief economist Jörg Krämer. He added, "I think Trump wants to put pressure on his own central bank. The decides on Wednesday on their key interest rates, which they should then lower by September at the latest, followed by two further reductions. "
. (tagsToTranslate) Mario Draghi (t) Donald Trump (t) ECB (t) Monetary policy (t) Bond yield (t) Loss