At the same time, there are worries that bond yields may be rising. |
European markets are set to follow the outlook for the dollar. The dollar is getting stronger and European currencies are weakening and that is probably taking European markets higher again. |
It has all started off strongly because of continuing M&A activity in the oil sector. |
It's very quiet and lackluster. I was looking for the markets to come up slightly because of a modest rally in the Deutsche mark-dollar. But even that has started to come down again. |
Part of this is political posturing. But what companies are realizing is that arrival of the euro is making German corporate costs structures increasingly uncompetitive. |
The euro has clearly accelerated some people's focus on cost-saving synergies. |
There's a more comfortable feeling across the market. People are starting to look back at fundamental valuations and that has pushed 'old economy' stocks back up. |
This will lead to rising unemployment levels in Germany. |