Deutsche Bank: Global investors have not fully digested the impact of Germany's extraordinary spending plan

On March 6th, the Jinshi data reported that after US President Trump's adjustment of transatlantic relations triggered a huge change in Germany's defense and infrastructure spending of 500 billion euros, the global financial markets continued to undergo intense adjustments on Thursday. The European Central Bank, as expected, cut interest rates again and indicated that monetary policy is becoming less restrictive. Traders believe this means that the likelihood of another rate cut in April is slim, which will boost the euro again. This usually attracts the attention of traders, but it's just one of many factors. 'I still believe that global investors have not fully understood and digested the seriousness of the (German) news,' said Jim Reid, market strategist at Deutsche Bank's research department. He estimated that the sharp rise in German bond yields on Wednesday was the largest since the reunification of East and West Germany in 1990. 'This is an unprecedented change, perhaps only fast money and flexible investors have reacted so far.'