European Market Recap: EU Bonds Rise Following Low German Consumer Confidence

Market Updates | Written by CEP News | Jul 28 08 11:54 GMT |

(CEP News) - After German consumer confidence declined to multi-year lows, European equity markets are trading lower with the Eurostoxx losing 20.93 points on the day and the UK FTSE 100 down 7.40 points to 5345.199. In Germany, the bund was up 3.0 ticks to 110.64 with yields down 1.9 bps to 4.59% while the 10-year gilt was up 4.0 ticks to 106.04 with yields down 1.2 bps to 4.98%. On Monday, the GfK Group reported that its consumer confidence forecast for Germany fell to 2.1 in August, down from both the 3.5 level expected and the 3.6 reading observed in July. August's reading is the worst recorded since June 2003. Meanwhile, July's figure was revised down from an initial reading of 3.9. There were not major macroeconomic releases from the UK. The five-year Bobl was up 12.5 ticks to 106.35, the two-year Schatz up 3.5 ticks to 102.68 and the June 2008 Euribor contract trading up 0.5 ticks to 94.98. The spread between the 10-year Bund and 10-year U.S. Treasury notes widened 0.209 bps to -50.60. UK 30-year bond yields were down 0.7 bps to 4.62%, five-year bond yields were down 2.1 bps to 4.93%, while yields on the two-year bond were down 2.2 bps to 4.96%. The September 2008 Short Sterling contract was down 0.5 ticks to 94.13. Yields on U.S. 10-year Treasury notes were down 1.8 bps to 4.079%. European stock markets were declining with the Eurostoxx down 20.93 points to 2836.28, the UK FTSE 100 down 7.40 points to 5345.199 and the German DAX down 69.86 points to 6366.85. The Japanese Nikkei was trading up 19.02 points to 13353.78. The Canadian dollar was down 0.02 cents to 0.9804 against the USD (1.02 USD/CAD). Against the euro, the loonie was down 0.20 cents to 0.6223 (1.6069 CAD/EUR). The U.S. dollar was down 0.14 to 107.72 and the euro was up 0.27 to 169.70, both against the yen. The euro was up 0.47 cents to 1.5755 while the pound sterling was down 0.46 cents to 1.9871, both against the USD. The euro was up 0.42 cents to 0.7929 pounds. The Swiss franc was up 0.24 cents to 1.034 against the USD and down 0.10 cents to 1.6289 against the euro. All data were taken at 7:52 a.m. EDT. Generated by CEP Newswires, edited by Nancy Girgis, ngirgis@economicnews.caThis email address is being protected from spam bots, you need Javascript enabled to view it CEP Newswires - CEP News © 2008. All Rights Reserved. www.economicnews.ca The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News. A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer.