The Eurozone periphery bonds gained Wednesday as the possibility of a victory for Republican Party nominee Donald Trump in next week’s U.S. Presidential election pushed investors to buy safe-haven assets.
The French 10-year bond yields, which moves inversely to its price, fell 6 basis points to 0.440 percent, Irish 10-year bonds yield dipped 4 basis points to 0.618 percent, Italian equivalent tumbled 8 basis points to 1.668 percent, Netherlands 10-year bonds yield inched 4-1/2 basis points lower to 0.251 percent, Portuguese equivalents down 7-1/2 basis points to 3.277 percent and the Spanish 10-year bonds yield slid 9 basis points to 1.212 percent by 10:20 GMT.
Market also remained concerned of a Brexit-like outcome at the presidential election on November 8. Also, it is widely expected that the Federal Reserve is unlikely to hike rates at this week’s FOMC meeting on November 2 before the US presidential election.
Moreover, recent polls showed a tighter race between the two Presidential candidates. The RealClearPolitics poll displayed that Democratic nominee Hillary Clinton’s lead over her Republican rival Trump has narrowed down to 2.2 percentage points from more than 7 points two weeks ago.
In addition, the Eurozone bonds have been closely following developments in oil markets because of their impact on inflation expectations, which is well below the European Central Bank's target. Crude oil prices fell for a fourth day as investors remained cautious ahead of official U.S. stockpile figures later in the day after industry data showed a surprise build in inventories, underlining a persistent global glut. The International benchmark Brent futures fell 1.52 percent to $47.41 and West Texas Intermediate (WTI) tumbled 1.59 percent to $45.93 by 10:20 GMT.
Meanwhile, the pan-European STOXX 600 index was down 0.55 percent and the euro-area blue-chip gauge the STOXX 50 dipped 0.69 percent, the DAX traded 0.87 percent lower, the PSI20 Index tumbled 0.68 percent and the CAC-40 fell 0.73 percent by 10:20 GMT.


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