After futures, yields and commodities tumbled earlier after Austria’s nationwide lockdown, which prompted fears that Europe’s largest economy, Germany, could follow suit after Health Minister Jens Spahn said that “we are now in a situation – even if this produces a news alert – where we can’t rule anything out. We are in a national emergency” when asked if Germany would also impose a lockdown.
Well, moments ago oil – which was hammered earlier in the session – surged…
… the EUR spiked…
… yields rebounded
… and futures spiked, with spoos rising above 4,700…
… after a report in Germany’s Bild that the German foreign minister excluded a national general lockdown.
“There is no discussion over a comprehensive lockdown,” outgoing German Foreign Minister Heiko Maas says in an interview with Bild, adding that there is no legal base any more for a national lockdown.
Maas also said that rules distinguishing between vaccinated and non- vaccinated people exist and are good and necessary
That news was enough to reverse the market’s bitter mood this morning, however we have a sinking suspicion that Germany will be forced to quickly walk back the “all clear” from the foreign minister.
