Stock markets came a signal of future recession in the U.S.
The debt markets for the first time in U.S. history has demonstrated the fall in the yield on 30-year treasuries below 2%. This was, in fact, a key news trading on Wednesday. Analysts explain such a significant decline in the fact that investors no longer believe in long-term economic growth of States. Hence, the subsequent rate increase in their understanding is in question.
Added fuel to the fire, and inversion of the yield curve U.S. 10-year government bonds for the first time in a long time she fell below the yield of 2-year-old. This indicates almost inevitable recession that can overtake the States in the coming months. This signal is very accurate since in the last 50 years, he has identified similar phases is almost unmistakable. On this background the American indexes have lost yesterday more than 3%.
The inversion of the yield curve has affected the British papers. The most dangerous thing in this situation is that fears of recession could fuel further demand for “safe haven”, thereby exacerbating anxiety around the shares of national companies.
As regards the exchange market, it just avoids any sudden movements. For the previous two days, EURUSD slipped off to 1.1200 1.1150, while the stock markets during the same time were very bumpy path. GBPUSD the fifth consecutive trading session marking around 1.2050. The strengthening of the Japanese yen was less ambitious than falling the day before, although usually a couple noted a close correlation with the dynamics of the stock markets.
Gold returned to growth: up until $1520, but still the highs of the environment block failed. Oil, by contrast, was marked by a decline under $59, while Brent continues to record a series of higher intraday lows.
All these global factors, one by one, talking about the fact that outside of the stock and debt markets, investor sentiment is far from panic. So on Thursday, we may be witnessing a positive course of trading.
Meanwhile, the equity indices in Hong Kong and Shanghai depart from local minima, by adding inside the day about 1.4%. Futures on the S&P500 also show growth of 0.7%, after the previous fall. Thus, a very high chance that the markets now take yourself in hand, and no new disturbing news may return to cautious buying, digesting the news about the above mentioned inversion of the yield curve.
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