16/05/2018 – 11:00 am: The political situation has the markets under control again. The oil price, which has recently been somewhat weaker, trades stil over USD 70 per barrel, close to multi-year highs.
Concerns about Venezuela’s exports and the effects of Iran sanctions are driving the black gold. Not least for this reason, the 10-year US yields continue to trade above the 3% mark, remaining within striking distance of the recently marked 7-year highs.
Friendly US yields are also driving the US-Dollar, which has reached an annual high against the euro (1.183). The common currency is also burdened by the formation of a coalition in Italy. The „Five-Star-Movement“ wants to demand a debt write-off of 250 billion euros from the ECB – and also demands a exit-mechanism to leave the monetary union. The stock markets are still relaxed about the hustle and bustle on the political front. Dax, Dow & Co. are currently consolidating their most recent price gains. Stock traders probably think it’s the same as always and political stock markets have short legs.
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