Global stock market investors foresee the harbinger of a major economic downturn.

Monica McNeil

2019-09-17 08:33:00 Tue ET

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.

Blog+More

U.S. presidential election: a re-match between Biden and Trump in November 2024

Dan Rochefort

2024-03-19 03:35:58 Tuesday ET

U.S. presidential election: a re-match between Biden and Trump in November 2024

U.S. presidential election: a re-match between Biden and Trump in November 2024 We delve into the 5 major economic themes of the U.S. presidential electi

+See More

The recent Bristol-Myers Squibb acquisition of American Celgene is the $90 billion biggest biotech deal in history.

Jacob Miramar

2019-01-10 17:31:00 Thursday ET

The recent Bristol-Myers Squibb acquisition of American Celgene is the $90 billion biggest biotech deal in history.

The recent Bristol-Myers Squibb acquisition of American Celgene is the $90 billion biggest biotech deal in history. The resultant biopharma goliath would be

+See More

Nobel Laureate Joseph Stiglitz maintains that globalization only works for a few elite groups.

Becky Berkman

2019-08-09 18:35:00 Friday ET

Nobel Laureate Joseph Stiglitz maintains that globalization only works for a few elite groups.

Nobel Laureate Joseph Stiglitz maintains that globalization only works for a few elite groups; whereas, the government should now reassert itself in terms o

+See More

Climate change and ESG woke capitalism

Dan Rochefort

2022-11-30 09:26:00 Wednesday ET

Climate change and ESG woke capitalism

Climate change and ESG woke capitalism In recent times, the Biden administration has signed into law a $375 billion program to better balance the economi

+See More

Steven Shavell presents his economic analysis of law in terms of the economic outcomes of both legal doctrines and institutions.

Jacob Miramar

2023-08-21 12:25:00 Monday ET

Steven Shavell presents his economic analysis of law in terms of the economic outcomes of both legal doctrines and institutions.

Steven Shavell presents his economic analysis of law in terms of the economic outcomes of both legal doctrines and institutions. Steven Shavell (2004)

+See More

Stock Synopsis: Pharmaceutical post-pandemic patent development cycle

John Fourier

2024-05-05 10:31:00 Sunday ET

Stock Synopsis: Pharmaceutical post-pandemic patent development cycle

Stock Synopsis: Pharmaceutical post-pandemic patent development cycle In terms of stock market valuation, the major pharmaceutical sector remains at its

+See More