Euro

Euro falls, bond yields up on report Germany’s Merkel won’t seek re-election as CDU party chair

Oct 29 • Morning Roll Call • 68 Views • No Comments

(Reuters) – The euro fell briefly and German government bond yields rose on Monday, after a report that German Chancellor Angela Merkel has told leaders of her Christian Democrats (CDU) that she will not seek re-election as party chairwoman in December.

Merkel has been CDU chairwoman since 2000 and giving up the role would start a race within the party to succeed her as chancellor.

The euro fell as much as 0.4 percent to the day’s low of $1.1361 after the news. It later erased some of those losses to trade down 0.1 percent at $1.1389, roughly where it stood before the report.

The euro zone’s leading stock index rose 0.7 percent by 0941 GMT and Germany’s DAX gained 1.1 percent. Both indices benefit from a weaker euro helping exporters.

German bond yields extended their rise, with the 10-year Bund yield last up almost 4 bps at 0.39 percent.

“This news would signal the quality of German credit would deteriorate because markets are extrapolating from the results of the weekend state election to conclude that the next government will have a bigger populist portion to it,” said Mizuho rates strategist Peter Chatwell.

ECONOMIC CALENDAR EVENTS FOR OCTOBER 29th

GBP Net Lending to Individuals (MoM)
GBP Consumer Credit (Sep)
GBP Mortgage Approvals (Sep)
GBP M4 Money Supply (MoM) (Sep)
GBP M4 Money Supply (YoY) (Sep)
EUR European Commission Releases Economic Growth Forecasts REPORT
GBP CBI Distributive Trades Survey – Realized (MoM) (Oct)
USD Core Personal Consumption Expenditure – Price Index (MoM) (Sep)
USD Personal Consumption Expenditures – Price Index (YoY) (Sep)
USD Personal Income (MoM) (Sep)
USD Personal Spending (Sep)
USD Personal Consumption Expenditures – Price Index (MoM) (Sep)
USD Core Personal Consumption Expenditure – Price Index (YoY) (Sep)

 

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