Oil Prices Buoy Stocks Despite German Export Drop

European yields are higher, and core European yields are moving up, in tandem with stock markets as oil prices[i] picked up. Eurozone peripheral markets continue to outperform and spreads are still coming in, likely also helped by strategic placing of ECB asset purchases, as Eurozone stability concerns are on the rise amid the flaring up of the Greek debt crisis. French election jitters and external pressure that seems to promote the break-up of European unions and institutions. Bund futures are outperforming after weak German export data at the start of the session, although the drop-in December didn’t stop Germany from posting another record trade surplus last year, which will only add to criticism of German export strength despite the fact that in real terms net exports actually detracted from growth last year. In the U.K., the lower house gave PM May the power to trigger Brexit in last night’s vote and a stronger Pound this morning is adding to Gilt and FTSE 100 underperformance.

 

 

Continue reading: https://www.iforex.com/news/oil-prices-buoy-stocks-despite-german-export-drop-24901 

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