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16 May 2014
Risk aversion remains a key factor – Danske Bank
FXStreet (Edinburgh) - In the view of Sverre Holbek, Senior Analyst at Danske Bank, yesterday’s risk aversion dominated the sentiment.
Key Quotes
“Risk aversion gained the upper hand yesterday, as the downbeat European economic data set the tone for the session. Hence, the key stock indices traded around 1% lower both in Europe and the US”.
“The widening in European peripheral bond spreads may also have been a contributing factor. Over the day, Spain and Italy widened some 25bp versus Germany in the 10-year segment. An important driver behind the underperformance in the periphery seemed to be concerns over the taxation of Greek government bonds”.
“Despite the overall strong data from the US, Treasuries traded significantly stronger on Thursday, likely driven by the general sell-off in risky assets”.
Key Quotes
“Risk aversion gained the upper hand yesterday, as the downbeat European economic data set the tone for the session. Hence, the key stock indices traded around 1% lower both in Europe and the US”.
“The widening in European peripheral bond spreads may also have been a contributing factor. Over the day, Spain and Italy widened some 25bp versus Germany in the 10-year segment. An important driver behind the underperformance in the periphery seemed to be concerns over the taxation of Greek government bonds”.
“Despite the overall strong data from the US, Treasuries traded significantly stronger on Thursday, likely driven by the general sell-off in risky assets”.