2019-09-17 08:33:00 Tue ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
Global stock market investors foresee the harbinger of a major economic downturn. Many stock market investors become anxious due to negative term spreads and negative interest rates worldwide. As the 10-year Treasury bond yield exceeds the 3-month Treasury bill yield, the U.S. experiences another yield-curve inversion that often serves as an important economic indicator of the next recession. In Germany, prime interest rates become negative across the board from overnight deposits to 30-year government bonds. Further, negative yields extend to 50-year government bonds in Switzerland.
In terms of core asset price normalization, the greenback appreciates substantially against several currencies such as the Chinese renminbi, British pound, Euro, and Japanese yen. Copper prices decline substantially to reflect a major deterioration in industrial production; gold prices reach their 6-year peak; and the recent Iranian seizure of Gulf oil tankers causes sharp oil price fluctuations. Pervasive investor fear and anxiety can permeate key global asset markets as these economic signals portend a major recession. Other important economic indicators include sovereign-debt-to-real-GDP ratios, fiscal deficits, and current account deficits etc. In this light, Indonesia, Pakistan, South Africa, Turkey, Ukraine, and Venezuela seem to carry the highest risks as the capital outflows substantially exceed the capital inflows of foreign direct investment.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2017-05-25 08:35:00 Thursday ET
Treasury Secretary Steve Mnuchin has released a 147-page report on financial deregulation under the Trump administration. This financial deregulation seeks
2018-12-13 08:30:00 Thursday ET
The recent arrest of HuaWei senior executive manager may upend the trade truce between America and China. At the request of several U.S. authorities, Canadi
2017-11-05 09:45:00 Sunday ET
President Trump criticizes the potential media merger between AT&T and Time Warner, the latter of which owns the anti-Trump media network CNN. President
2017-03-03 05:39:00 Friday ET
As the biggest IPO since Alibaba in recent years, Snap Inc with its novel instant-messaging app SnapChat achieves $30 billion stock market capitalization.
2018-05-21 07:39:00 Monday ET
Dodd-Frank rollback raises the asset threshold for systemically important financial institutions (SIFIs) from $50 billion to $250 billion. This legislative
2018-02-15 07:43:00 Thursday ET
Fed minutes reflect gradual interest rate normalization in response to high inflation risk. FOMC members revise up the economic projections made at the Dece