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 ...

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