Sigma Forex News : LONDON (Thomson Financial) - European government bonds were slightly lower in quiet trade, with a strong performance by equity markets offsetting any risk aversion caused by the fighting between Russia and Georgia.
With little major Sigma Forex Economic Calendar out this morning and European markets quiet for the holiday season, analysts said most trade was corrective with nothing to provide any fresh direction.
"With little in the way of significant economic data or events today there simply isn't much to influence price action in European government bonds," said John Ratcliffe at Thomson IFR Markets.
Meanwhile the news that Russia has apparently reasserted control over South Ossettia has eased risk aversion and any concern that the fighting could have had an effect on oil supplies.
"We expect the situation to calm notably and it would seem likely that the Russian markets continue to recover," said Matthew Vogel at Barclays Capital.
The focus this week in Europe is likely to be on the euro zone second quarter GDP growth figures due on Thursday. Quarterly growth is expected to be flat, but analysts said there is a risk that it could come in on the negative side, boosting expectations that the next move in interest rates will be down.
No comments:
Post a Comment