News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: US 500: 0.01% Wall Street: 0.01% Germany 30: -0.11% France 40: -0.19% FTSE 100: -0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/HdfL6Ct6sE
  • McKesson said to explore sale of European, UK businesses -BBG $MCK $EURUSD $GBPUSD
  • EUR/GBP continues to trade towards the bottom of the trading range. Sentiment remains ‘mixed’ after near term decline in long positioning. Get your market updates from @RichardSnowFX here:https://t.co/i7uESnbkBE https://t.co/rdqrIAUnuG
  • @JohnKicklighter At the very least, it’s providing extra entertainment for us market junkies plugged into #Fed Chair Powell’s congressional testimony. Perhaps serving as a coping mechanism for HODL-ers as well. $BTCUSD #Bitcoin
  • U.K.-EU TRUCE LIKELY IN N.IRELAND TRADE DISPUTE, OFFICIALS SAY - BBG
  • Fed's Powell: - The Fed is prepared to utilize all of its tools to maintain inflation at or below 2% - It is extremely unlikely that inflation will be as high as it was in the 1970's
  • Fed's Powell: - Enhanced unemployment benefits may be a factor limiting job growth - In the fall, I believe we will see a lot more jobs being created
  • Fed's Powell: - On the employment front, we still have a long way to go - When the economy is healthier, we will focus on reducing government borrowing
  • So do crypto traders resort to making memes as they wait for the market to recover. The sheer volume of these memes is incredible to behold
  • Fed's Powell: - In certain circumstances, a backstop is preferable than a direct loan - Vaccines and their widespread use are critical to recovery
Spanish Politics: Negative for Madrid Stocks, Positive for Government Bonds

Spanish Politics: Negative for Madrid Stocks, Positive for Government Bonds

Martin Essex, MSTA, Analyst

Spanish stock and bond prices, news and analysis:

  • A snap general election in April looks likely in Spain, with the uncertainty generated likely to weaken the Madrid stock market and bolster Spanish government bond prices.
  • That follows the decision by both Catalan independence parties to vote against the Socialist government’s budget draft, which has therefore been rejected by the Spanish Parliament.

Funds likely to flow from Spanish stocks to bonds

The prospect of snap Parliamentary elections in Spain, perhaps in April, will likely drive money from the Madrid stock market into Spanish government bonds (Bonos) as political uncertainty rises.

On Wednesday, two Catalan independence parties voted against the Socialist government’s 2019 budget draft and as a result the proposal was rejected by Parliament. This has increased the chances of elections and will likely keep the main IBEX 35 stock market index under downward pressure.

Madrid Stock Market Price Chart, Daily Timeframe (January 9, 2018 – February 13, 2019)

Latest Madrid stock market price chart.

Chart by IG (You can click on it for a larger image)

By contrast, the political uncertainty will likely push money into the relative safety of Bonos, raising prices and lowering yields.

Spanish 10-Year Government Bond Yield Chart, Daily Timeframe (October 9, 2018 – February 13, 2019)

Latest Spanish government bond yield chart.

Source: Investing.com (You can click on it for a larger image)

For the Euro too, these developments are arguably negative. However, the impact could be offset if polls suggest a victory for the two center-right parties – the People’s Party and Citizens – as these would likely be seen as more market-friendly than the left-wing PSOE and Podemos parties.

Resources to help you trade the forex markets:

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES