Lex

Lex: German short selling ban

The French government on Wednesday led European reaction against the German government’s move to ban the naked short selling of eurozone sovereign debt instruments. Christine Lagarde, French finance minister, ruled out a similar move by France and called for an urgent meeting of European securities regulators to discuss the implications of Germany’s unilateral ban. Sweden and The Netherlands also dismissed the German move, as European equity markets tumbled and the euro hit a fresh four-year low against the dollar overnight before rallying. Yields on US Treasuries approached the lowest levels of the year as investors shunned risky assets. Vincent Boland analyses the market's reaction.