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Overnight on Wall Street, the Dow Jones Industrial Average rose 140.90 points to close at 25,657.73, while the S & P 500 closed the trading day up 0.7% to 2 818.46, his first gain in three sessions. Nasdaq Composite added 0.7% to close at 7,691.52.
Wall Street gains were reduced, but the 10-year Treasury benchmark rebounded to its lowest level since December 2017. It was 2.4177% at 9:45 am HK / SIN.
This benchmark rate stood at around 2.42% Tuesday afternoon in the United States, about 3 basis points below its highest level of the session. The 10-year decline resulted in a reversal of the yield curve, as the yield on 3-month Treasury bills rose above the benchmark rate.
Investors perceive the reversal of the yield curve as a sign that a recession could loom on the horizon. A rise in long-term rates is therefore considered a positive element.
This occurred during the publication of weak economic data in the United States and around the world, as well as the deterioration of the US Federal Reserve's economic outlook.
"The risk of a recession in the United States has increased, largely because of the risk of a deterioration of sentiment, but we still do not expect a recession in the United States or the world in 2019," said Esty Dwek, strategist Investment Manager at Natixis Investment Managers. a note from Tuesday.
"We may see increased volatility and short-term corrections in equity markets as growth fears recur, but we continue to expect risky assets to rise over the next few months, but not at the same pace In January, "said Dwek.
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