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

Former Fed Chair Paul Volcker releases his memoir, talks about American public governance, and worries about plutocracy in America.

Apple Boston

2018-10-23 12:36:00 Tuesday ET

Former Fed Chair Paul Volcker releases his memoir, talks about American public governance, and worries about plutocracy in America.

Former Fed Chair Paul Volcker releases his memoir, talks about American public governance, and worries about plutocracy in America. Volcker suggests that pu

+See More

Incoming New York Fed President John Williams suggests that it is about time to end forward guidance.

Becky Berkman

2018-05-13 08:33:00 Sunday ET

Incoming New York Fed President John Williams suggests that it is about time to end forward guidance.

Incoming New York Fed President John Williams suggests that it is about time to end forward guidance in order to stop holding the financial market's han

+See More

France and Germany are the biggest beneficiaries of Sino-U.S. trade escalation.

Chanel Holden

2019-07-11 10:48:00 Thursday ET

France and Germany are the biggest beneficiaries of Sino-U.S. trade escalation.

France and Germany are the biggest beneficiaries of Sino-U.S. trade escalation, whereas, Japan, South Korea, and Taiwan suffer from the current trade stando

+See More

Warren Buffett approves Berkshire Hathaway to implement new meaningful stock repurchases.

Dan Rochefort

2018-11-15 12:35:00 Thursday ET

Warren Buffett approves Berkshire Hathaway to implement new meaningful stock repurchases.

Warren Buffett approves Berkshire Hathaway to implement new meaningful stock repurchases. Buffett sends a positive signal to the stock market with the Berks

+See More

Yale macro economist Stephen Roach draws 3 major conclusions with respect to the Chinese long-run view of the current tech trade conflict with America.

Joseph Corr

2019-09-05 09:26:00 Thursday ET

Yale macro economist Stephen Roach draws 3 major conclusions with respect to the Chinese long-run view of the current tech trade conflict with America.

Yale macro economist Stephen Roach draws 3 major conclusions with respect to the Chinese long-run view of the current tech trade conflict with America. Firs

+See More

Apple upstream suppliers such as Foxconn and Pegatron experience sharp share price declines during the Christmas 2017 holiday quarter.

Jacob Miramar

2018-11-21 11:36:00 Wednesday ET

Apple upstream suppliers such as Foxconn and Pegatron experience sharp share price declines during the Christmas 2017 holiday quarter.

Apple upstream suppliers from Foxconn and Pegatron to Radiance and Lumentum experience sharp share price declines during the Christmas 2017 holiday quarter.

+See More