Trump trades falter as stocks fall, treasuries rally with gold
Latest News »
- Govt serious in bringing fugitive economic offenders to task: Rajnath Singh
- Sushma Swaraj arrives in China for talks with Wang Yi, SCO meet
- Make the best of technology to deal with administrative delays: Modi tells bureaucrats
- Amit Shah says ordinance shows Modi govt’s commitment to women’s safety
- Sanskrit most suitable for machine learning, AI: Ram Nath Kovind
London: The Donald Trump effect lost its sway over global financial markets as investors shifted to new threats including the future of Italy’s government and fled to the safety of bonds and gold.
S&P 500 Index futures signaled US stocks will slip from all-time highs. Treasuries rebounded as investors scaled back expectations that Trump will boost growth and inflation. Italian banks led declines in European shares as Prime Minister Matteo Renzi faces a key referendum on Sunday that may see voters reject his constitutional reform and prompt his resignation. Gold rose for a second day, cutting the biggest monthly loss since 2013.
“The Trump trades were a distraction for a while but now people are starting to look elsewhere for market drivers,” said Kevin Lilley, a manager of euro-area equities at Old Mutual Global Investors in London. “People are getting worried about the impact that a power vacuum in Italy could have on the refinancing needs of its banks. It’s a nervous market at a time when liquidity isn’t great.”
As many as eight Italian banks are at risk of failing if the Renzi loses a constitutional referendum this weekend. Shares in the nation’s largest bank UniCredit SpA fell for a fourth day, heading for the lowest since August. Banca Monte dei Paschi di Siena SpA, which holds the most Italian sovereign debt relative to tangible equity and is under pressure to raise €5 billion of fresh money, fell as much as 17%. Bloomberg
Latest News »
IMF, World Bank must develop strategy for enhancing public debt transparency: India
CPM rules out alliance with Congress, but to have ‘understanding’
SCO meet: No bilaterals between foreign, defence ministers of India, Pakistan
Income tax dept steps up surveillance to crack down on unaccounted use of funds
HDFC Bank Q4 net profit rises 20% to Rs4,799 crore
Mark to Market »
IndusInd Bank’s big bad loan divergence foretells a painful bank results season
Investors in IBC companies face a harsh reality
Q4 results: Tata Consultancy Services ends FY18 well, will valuations tango?
RBI minutes show a repo rate hike is around the corner
ACC: Healthy volume growth, lower overhead expenses save the day