Market Movers Yesterday
- The only data out of the UK yesterday was that the BOE would not raise their interest rates. This had little effect on the market as it was generally expected.
- The first piece of data that we woke up to was the announcement that Portugal was now asking for a bailout. This was backed by the German government; the finance minister called it a necessary step and one that many saw as inevitable. Although he said the bailout would have to come alongside a reform of the current bailout system.
- The main data out in the entire market was the rise in interest rates to 1.25% in the Euro zone. This was widely expected to come today with many investors feeling it would be the first of many coming over the next few quarters with the interest rate in Europe reaching 2% by the end of the year. However the Euro fell after Trichet spoke when he went someway to dispel this idea.
Market Movers Today
- The main data out today is the German Trade Balance figure which is meant to come in considerably better than previous increasing by €2.4m. This will go some way to justify the rate increase as German continues to exceed the growth of the other nations in the EU.
- British PPI is expected out today with a mixed bag of results this is bound to have little effect on the market though as it is not considered to be overly important. However it is worth noting that MoM we are seeing a slight increase on both input and output.
- There is no important data out of the US.