Portuguese-induced panic sweeps markets

Sovereign debt yields are again the talk of the City, after markets initially fell because of the panic caused when two Portuguese politicians stepped down.

The pressure being placed on Portugal because of austerity measures has meant that a number of members of the government felt that their position was untenable in the face of mounting public disquiet.

The worry is that this public unrest will transfer to other countries that are currently struggling with the austerity measures imposed by the ECB and IMF.

The other issue slowly coming to the surface is that Slovenia has seen its ten-year sovereign debt yields move up to around 6.5%, and the country could find itself needing to be bailed out. This would see markets return to the self-fulfilling prophecy of bailouts witnessed in 2012.

Adding to the negativity in equity markets is that it’s likely a proportion of traders are looking to close-out positions ahead of tomorrow’s US bank holiday, as US traders will not have that opportunity ahead of Friday’s pre-open non-farm payroll figures. With the current risk-off sentiment, there can’t be many traders or investors looking for unnecessary risk.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.