All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
Germany has its debt reduced to the lowest level since 2011
In the first half of 2018, Germany managed to reduce its overall public debt by up to 2.3% to about 1.93 trillion euros or $2.27 trillion, thus pushing this stuff to the lowest value since 2011. That’s what data disclosed on Wednesday.
There’s no doubt that sustained economic surge appears to be a long-awaited gift for the German government due to the fact it actually enjoys a budget surplus. Well, the given surplus gives the German authority an excellent opportunity to have public spending raised even without taking another borrowing.
The debt of all state levels, with the federal government, up to the country’s 16 federal states, social security systems, and municipalities headed south by nearly 46.5 bln euros in contrast with January through June year-on-year. That’s what the Federal Statistics Office uncovered.
As a matter of fact, chancellor Angela Merkel's cabinet had debt cut by about 1.7% to the outcome of about 1.22 trillion euros and the 16 federal states reduced debt by approximately 3.6% to nearly 574.5 billion euros. Besides this, debt of the social security systems went down by approximately 7.1% hitting 403 million euros.
The previous week Germany had its debt issue plans trimmed for the fourth quarter by nearly 2 billion euros or $2.34 billion. It’s apparent that the shrinking debt poses a serious challenge for the European Central Bank, which is going to discuss how it’s going to reinvest funds accumulating from government bonds under its asset purchase initiative, which mature in 2019.
Aside from that, market participants are also eager to know whether the EU’s primary financial institution is going to deviate from its current regulations and proceed with its slow buying in Germany, exactly where it’s approaching a self-imposed debt cap.
The market sentiment is mixed, and the US dollar is trading near the lowest levels for over two years. Let’s have a look at the main market movements today.
The market sentiment deteriorated because of the election uncertainty and worries about rising virus cases all over the world. Let's make some analysis!
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.