[ad_1]
Hello and welcome to our slippery coverage of the global economy, financial markets, the eurozone and businesses.
The concern over the slowdown in the global economy is accentuating today, with the warning of the bond market and the possibility of a currency crisis again in Turkey.
Investors continue to engage in sheltered government bonds, driving up prices and a steady decline in yields (interest rates). It is a clbadic sign that markets are banking on weak growth, or even a dreaded recession.
Overnight, the yield on 10-year US Treasury bonds hit a 15-month low, following signals from several central bankers that the global outlook has weakened.
Photography: Refinitiv
This means that the US yield curve (bond price chart of various maturities) continues to reverse. This is a worrying sign – indicating that investors are losing hope that growth will continue in the long run.
Trinh
(@Trinhnomics)Hello ?- I feel fear in the markets:
NKY -1.7%
KOSPI -0.9%
UST 10 years at 2.34%WE @ US Treasury curve making the Nike sign & it's not just a mood for Asian risky badets pic.twitter.com/1WX742JtKu
Returns on other G7 government bonds are also falling, indicating that growth concerns are widespread.
As Jasper Lawler of London Capital Group says:
Wall Street closed in the red markets, and Asian markets generally declined as developed market bond yields continued to fall overnight. US 10-year Treasury yields hit their all-time low in 15 months, while Australian bond yields hit a record high and Japanese bond yields are at levels not seen since 2016.
The rapid and persistent decline in bond yields is worrying investors about the economic outlook.
Turkey is also causing some anxiety, the crackdown on foreign bank lending by foreign banks provoked financial rations yesterday. Ankara said it was determined to prevent speculation from weakening the lira – but economists worry that the currency compression is hurting its economy.
Shares fell sharply in Istanbul yesterday, as investors sold badets to get their hands on the lira to settle trades, after the currency's borrowing rate soared more than 1.00 %.
Also coming today
New euro area confidence data and up-to-date growth figures in the US could shed new light on the state of the global economy.
British business leaders and politicians will gather at the annual conference of British Chambers of Commerce – expect Brexit to play a leading role.
Shopkeepers in the city will cast a worried and tired look on Westminster, looking for signs of a breakthrough in Brexit. The pound remained fairly stable yesterday, despite the deputies who rejected eight different solutions.
Paul Johnson
(@Paul__johnson)The guardian of tomorrow
-The mess that is Brexit pic.twitter.com/oXm5iEph60
L & # 39; s calendar
- 10:00 GMT: Economic Confidence Report of the euro area
- 12:30 GMT: US GDP for the 4th quarter of 2018 (third estimate)
[ad_2]
Source link
