German banks are in bad shape

Daily Analysis - 16/08/2019

Citi expert state that German banks in worse position than the rest

german-banks


According to Ronit Ghose, Citi's head of banks research, German banks are in a vulnerable state opposed to the rest of EU banks. The European banking area has been fighting to overcome their difficulties regarding their profitability since the financial crash. The second-quarter of the sector’s profits are down 7%.

According to many experts, the biggest problem for banks are the ongoing low-interest rates from the European Central Bank. The Stoxx Europe banks dropped around 45% over the past decade in comparison to the US-centered KBE bank that totaled 86%.

Dollar index wins over its 6 rivals


On Friday the popular greenback remained in profit following an increase in the US retail sales that softened the anxieties regarding the US economy. However, investors warned that the US dollar is still fragile due to the growing risks for a potential economic recession. The greenback profited versus the safe-haven currencies such as the Swiss franc and yen. During Asian trading, the greenback increased its profits and the yen dropped while Japanese stocks cancelled their initial losses. The movement soon faded. The dollar index versus a box of six important currencies went higher to 98.217.

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Oil going up 


On Friday crude oil increased after two days of falls. The increase came after the US data that revealed an improvement in retail sales. The data somewhat alleviated concerns regarding a recession in the world’s largest economy. On Wednesday US crude rose 65 cents to $55.10 a barrel, having fallen almost 1.5% the previous session.

Brent crude rose 52 cents, to $58.74 a barrel after dropping more than 2% on Thursday.

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Almost 21 golden days for gold


On Friday the safe haven Gold fell but was on course for almost 21 days of profits. The increase came while concerns over global economic retardation and confusion regarding the ongoing US-China trade conflict increased the metal’s safe-haven demand. US gold futures was at $1,5230 an ounce while Spot gold fell 0.1% to $1,520 per ounce however is up more than 1.6% so far this week.

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