Moscow, August 15 — “News. Economy” After a short pause global markets were plunged to the bottom. Situation like two drops of water similar to last year’s collapse.
After Wednesday, the us stock indices lost an average of 3%.
In the red zone were all more or less significant companies. Giants such as Apple, Google and Amazon — have all lost about 3%, and Exxon Mobil and is 4%. The banking sector was even more deep red. From the burst of optimism that was observed on Tuesday on the background of de-escalation of a trade war have not disappeared.
The fall took place amid poor macroeconomic statistics and alarm signals from the debt market.
The mass flight of investors into safe assets has led to the fact that the yield curve of us government bonds took the form of inversion, that is, short rates have been above long.
This indicator, which has more than 50 years almost without interruption predicts the onset of the recession.
By the way, a similar situation is observed and on the other side of the Atlantic — in the bond market in the UK.
In the commodities market was also dominated by an extremely nervous situation. Oil prices at the moment have lost about 5%, and gold, on the contrary, was in demand, adding more than one percent.
It is worth saying that the current collapse as two drops of water similar fall last year. Then in the midst of the decline of the US and China announced a trade truce, after which the indices are tossed upward, but a positive has sufficed only on one session, after which the fall has intensified. Exactly the same pattern we see now. By the way, last year the bond market was also filed, though weak, but still signals a coming recession.
It seems that the bidders do not expect the situation to improve in the foreseeable future. The cost of the put options are “far out of the money” has grown dramatically, indicating that the desire of investors to hedge against a heavy fall.
It seems that the market does not leave the Federal reserve variants — the regulator will have to more actively reduce your rates to prevent disaster.
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