Dead market! Video Outlook (german)

Equity markets once again rallyed yesterday for hopes of rumors of progress in negotiations between the U.S. and China. Weak U.S. economic data, on the other hand, has been ignored. But now time is running out: on December 15th the further US tariffs against China would come into force. It is unlikely that the Phase 1 deal will be signed before that. The stock markets are assuming that Trump will postpone the tariffs – and what if not? Meanwhile, there are new indications regarding the US repo market: Fed Vice-President Quarles (who will be questioned again today) sees a cause in the central bank’s regulations, but the problem is likely to be deeper. Without the Fed, the US money market would be dead.

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