Global stocks flat as central banks temper economic slowdown
European shares are steady; the kiwi dollar slides; and the US yield curve is still inverted, rattling nerves about a possible recession there
London — Global equity markets were flat on Wednesday, hoping central bank action in the world’s biggest economies could temper some of the slowdown in world growth, even though bond yields continued to flag recessionary fears. European shares, which broke four straight days of losses on Tuesday, held steady though bank shares got a 1% lift from comments by European Central Bank (ECB) governor Mario Draghi who signaled more assistance for banks via a cheap loans programme. German 10-year yields, already below 0% since Friday, fell further into negative territory, while the US bond yield curve remained inverted — three-month bills are yielding more than 10-year bonds — the key signal of recession, dampened appetite for risk. The US yield curve inversion, which has preceded every US recession for the past 50 years, triggered a sharp stock sell-off last week. The drop in yields picked up pace after the US Federal Reserve signaled a halt to its rate increases. Markets got a reminder of ...
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