Spain’s government bonds rose, with 10-year yields dropping the most in seven months, amid speculation the European Central Bank will accelerate efforts to ease the region’s sovereign debt crisis.
Italy’s securities also rallied after German Chancellor Angela Merkel and French President Francois Hollande pledged to do everything to keep the 17-nation currency bloc intact, echoing comments the day before from ECB President Mario Draghi. Germany’s bunds declined after Moody’s Investors Service cut the outlook on the nation’s Aaa rating, citing concern the country will have to support weaker euro-region members. The ECB meets to review monetary policy on Aug. 2.
“A lot of it is down to Mr. Draghi’s comments, which convinced the market that come next Thursday the ECB will be providing us with some support” for bonds, said Eric Wand, a fixed-income strategist at Lloyds Banking Group Plc in London. “The language he used was pretty forceful. If he fails to deliver on that promise the market is going to make them pay and big time.”
Bursa likely to extend profit taking
Share prices are expected to undergo further profit-taking next week with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) possibly retreating to the 1760 points support level.
Weak regi
Stable short-term rates seen next week
Short-term rates are expected to remain stable next week as Bank Negara Malaysia continues to intervene to reduce excess funds from the financial system.
On Thursday, the overnight rate s
Bentley China sales down 18% in Q1
Luxury car maker Bentley Motors Inc has said its auto sales in China decline 17.99% YoY to 474 units in China in the first quarter of this year.
The figure for the first three months accou
Xinjiang Kingtec Steel to issue bonds worth RMB 550 million
On May 21, Xinjiang autonomous region-based Chinese steelmaker Xinjiang Kingtec Steel Co a subsidiary of state owned company Xinjiang Cathay International Group, announced that its planned issue of e
Brazil's Consumer Sentiment Weakens Modestly In May
Brazil's consumer confidence weakened slightly in May after staying unchanged in the previous month, data released by the Getulio Vargas Foundation (FGV) showed Friday.