Stocks dip, dollar weaker because alleged Obama statement

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Stocks dipIt was a strange day on the European stock markets after the president of USA, Barack Obama allegedly made a statement in which he expressed concern over the strength of the dollar. This was later denied though. German government in the meantime weighed with more sales thanks to that.

Since the middle of April, the ten year Bund yields are constantly rising, which made them a central figure on the global markets. In the first hour of trading in Europe, they gained four basis points, causing another shake. The shared of the biggest bank in Germany, Deutsche Bank, jumped 6 percent, after the leadership change. German industrial output numbers announced better days for the biggest economy in Europe.

The Turkish lira got to a record low level and the main stock from this country made a fall of 6 percent, after the ruling party failed to win a majority on the elections. Future weeks could bring political turmoil so that will reflect on the markets even more.Stocks dip

 

According to the data reinforced investors, Europe is become economically stronger and is going away from the deflation made by a lot of debts and money market contracts below zero. The higher the yields on bonds are, the more stocks you have. The record for the last eight years this April was right before Bunds began to move down, causing more money to come back into the bond market. The sign of an economy getting stronger are supposed to share these values.

choose forex - ObamaBack on the statement given by Obama, which proved to be a false report? The U.S dollar fell rapidly after that, against the euro and the yen. Obama allegedly said that a strong dollar could be a problem, during a conversation in Germany. A strong denial came from the White House, so the American currency got back a little bit of its strength, but not enough to make a full recovery.