Fed fallout, China home-prices rise and there's an election in Greece this weekend. Here are some of the things people in markets are talking about this morning.
Yesterday's decision by the Federal Reserve not to raise interest rates continues to reverberate through markets this morning. European government bonds jumped as the Fed delay fuels speculation that the European Central Bank could step up its stimulus program. Expectations for further easing from Bank of Japan policy makers, who are not meeting again until two days after the Fed's October meeting, were not enough to stop the yen rising in overnight trade. U.S. two-year Treasuries staged their biggest one-day rally since 2009 following the Fed announcement, and that rally continues this morning with the yield on the two-year note falling to 0.67 percent according to Bloomberg Bond Trader data.
China home-price growth
New home prices in China rose in 35 of the 70 cities monitored by the government, up from 31 in July. The recovery, helped by five interest rate cuts since November and an easing of home-purchase restrictions, saw a recovery in property developer stocks on the Shanghai Stock Exchange, where the main index closed 0.4 percent higher in thin trading.
There's an election in Greece this weekend, and the result really is too close to call. With such uncertainty, it might come as a surprise to see Greek 10-year government bond yields hit a 2015 low in trading this morning. Results are expected to be announced late on Sunday evening, Athens time, with what are likely to be thorny coalition talks kicking off soon afterwards.
Deutsche Bank exits Russia
Deutsche Bank AG is set to close its Russian corporate banking and securities business as Germany's biggest lender continues its cost reduction drive. The move is supposed to help reduce complexity, costs, risks, and capital consumption, according to a statement published by the bank on Friday.
Federal prosecutors spoofer probe
Federal prosecutors are investigating whether a Chicago trader placed fake orders in an attempt to manipulate prices, said two people familiar with the matter. This is the third investigation in a year into spoofing, a practice where traders place orders they never intend to fill and then cancelling them. Spoofing is thought to have had a role in the 2010 flash crash, with U.S. prosecutors now attempting to extradite British day trader Navinder Singh Sarao from London next week to face charges of fraud and market manipulation.
What we've been reading
This is what's caught our eye over the last 24 hours.
- New Benchmark Podcast: will you get a pay rise this year?
- Bitcoin is officially not money.
- Can Germany beat the U.S. to the industrial internet?
- Alibaba's wipeout leaves investors questioning what comes next.
- This company's shares crashed after revealing it has $174 million - in an insolvent bank.
- UBS' list of the world's most expensive cities puts New York in the top three.
- The next crisis in Greece is refugees, not the euro.
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