On Thursday, 16 September, the market of European government bonds the second consecutive day the initiative is fully owned by the Bears, their actions have forced debt securities of European governments to fall significantly in price.
Catalyst for sales of bond auctions for the euro zone were the primary market, fully possess the attention of investors. At the auctions have been proposed for the implementation of debt obligations of governments of France (up 10.3 billion euros) and Spain (4 billion euros). Auctions have been very successful, and interest in the securities secondary market, respectively, fell drastically.
Did not save the situation and the macroeconomic statistics eurozone, whose output is virtually no impact on the nature of trading. In particular, the European statistical office in Luxembourg reported a very substantial reduction in export volumes. In July, for the first three months of slowing activity on a global scale caused a decline in orders for products produced in the leading euro-zone countries outside the region. As a result, after the June increase of 5.3% the volume of exports from the eurozone industrial production declined seasonally adjusted at 0.6%. The volume of imports in July has also decreased - on 1,5%, while the trade surplus jumped from June's 2.2 billion to 6.7 billion euros, while analysts forecast a reduction in surplus to 1.3 billion euros. Seasonally adjusted trade deficit declined by 200 million euros. Meanwhile, experts expect a greater reduction in the trade deficit - at 0.5%. Decline in exports will have a profound negative impact on economic development of the eurozone. Go to the expected slowdown in global economic recovery and the added anxiety about future cuts in government spending, which is the region's governments intend to implement in the near future. Therefore, European investors with growing pessimism about the future, which is reflected in their attempt to escape into quality reduce the risks of loss of their capital. And, although the bonds in the secondary market dropped in price, investors are more than replenished their stocks of "defensive" assets with new debt issuance eurozone.
