Reason for sudden sell-off in risk assets !!!

Status
Not open for further replies.

TradingFunda

Administrator
Staff member
#1
Reason for sudden sell-off in risk assets !!!

Today there was a ruling in German Constitutional Court against ECB bond purchase programme.The local court in its ruling partially held the programme unconstitutional from German perspective and gave three month ultimatum to ECB to fix its QE programme, much to the chagrin of market.

Given the EZ precarious financial and economic situation, uncertainty around Bundesbank participation led to risk assets getting sold off.

Italian bonds reacted negatively and jumped nearly 8-10 bps in benchmark bond and same spilling over to stocks and currencies.

INR too reacted negatively to the news and futures spiked from 75.85/87 zone to 76+ level. Nifty also pared its entire gains and trading now in negative.
 
Status
Not open for further replies.
Top