Global markets calmer as recession obsession is muted
European shares stave off a fifth day of losses as the US yield curve inversion feeds fears of a US recession
London — Calm returned to global markets on Tuesday as a steadier day for Europe and Asia’s bourses and a tick higher in benchmark bond yields helped ease nerves after a jarring few days dominated by recession worries. European shares were just about winning the battle to avoid a fifth day of losses, the euro was holding its ground after three days of falls, and Turkey’s lira seemed to have stepped off its latest rollercoaster ride. The bond markets remained the main focus though: 10-year German government bond yields remained below zero and key sections of the US yield curve remained inverted — where short-term borrowing costs are higher than longer-term ones. “The world is looking to fade the risk aversion caused by the inversion of the [US] yield curve,” said Société Générale strategist Kit Juckes, adding that it was difficult to position for a hypothetical recessions anyway. Overnight, MSCI’s broadest index of Asia-Pacific shares rebounded 0.2% after losing 1.4% in the previous ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.