Friday, October 1, the European government bond market with the opening of the trading session continued with the formation of a downward price movement. Market participants are the second consecutive day to actively sell bonds all the major European countries. Even before the news that the ECB minimizes non-standard measures to support the economy, has become a catalyst for sales of government bonds eurozone. In particular, the ECB does not intend to resume production of the six-month and twelve-month bonds, maturity dates are due to expire. The news continues to promote the circulation of rumors that the borrowed funds will go up.
Supported the spirit of market "bears" and the message that the international rating agency Fitch Ratings has revised upwards the forecast growth in economic activity in 2010. In the euro zone and Britain on 0,5% - to 1,8% and 1,7% respectively. In addition, released in China is evidence indicating that the growth of industrial production in the country exceeded expectations and turned out in September, the most significant in the last four months have caused a surge of optimism in the market and stimulated the interest in risky assets. As a result, the demand for protective assets finally fell.
Growth of positive sentiment was so great that the wave of sales of government bonds in Europe could not withstand even the weak macroeconomic statistics of leading European countries. In particular, German retail sales fell. Reported by the Federal Statistical Office in Wiesbaden. Instead of the expected growth of 0,4% retail sales in August dropped compared with July by 0.2%. In annual terms, had risen only 2.2%, while analysts had predicted an increase of 3,4%. Meanwhile, monthly statistics of retail sales due to its volatility is not able to give a true picture of consumption in the country. Especially, recent statistics indicate a decline in unemployment in Germany and on consumer spending growth in the II quarter. Clearly, high rates of II quarter and give the experts the Federation of German retailers to increase the previous forecast of growth of retail sales in 2010. from 0% to 1.5%.
