LONDON: German Bund futures rose on Wednesday as signs of slowing in the Chinese economy and uncertainty over Spain fueled concerns about the global outlook, but investors would likely refrain from placing big bets before important events this week.
China's normally robust services sector weakened sharply in September to its lowest point since November 2010, as slow growth in manufacturing finally began to feed through to the rest of the economy, an official survey showed on Wednesday.
The data, combined with comments by Spanish Prime Minister Mariano Rajoy, underpinned safe-haven German bonds, one trader said.
Rajoy said on Tuesday a request for European aid was not imminent following a report the country could apply for help as soon as this weekend. German Bund futures rose 34 ticks to 141.77.
But investors would likely be wary of taking big positions before the European Central Bank's monetary policy meeting and a Spanish auction on Thursday and US jobs data on Friday.
"I can't see why, on this side of (those events) they would get massively involved," the trader said.
Comments
Comments are closed for this article.