Stocks shaken by US recession fears, bonds price for rate cuts

SYDNEY - Major share indices were deep in the red in Asia on Monday as fears the United States could be heading for recession triggered mass risk aversion and wagers interest rates will have to fall sharply, and quickly, to support growth.Treasury futures were off 5 ticks, but that followed a huge rally on Friday where yields dived 18 basis points to the lowest since November.

"We have increased our 12-month recession odds by 10pp to 25%," said analysts at Goldman Sachs in a note, though they thought the danger was limited by the sheer scope the Fed had to ease policy."The premise of our forecast is that job growth will recover in August and the FOMC will judge 25bp cuts a sufficient response to any downside risks," they added.

Early on Monday, the dollar was down another 0.2% on the Japanese yen at 146.19, while the euro was holding steady at $1.0907. "If the recession narrative takes hold in earnest, we would expect that to change, and the dollar to rebound as safe-haven demand becomes the dominant driver in currency markets."

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Stocks making the biggest moves premarket: Hershey, Meta Platforms, Arm Holdings, Shake Shack and moreThese are the stocks posting the largest moves in premarket trading.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Stocks making the biggest moves midday: Shake Shack, C.H. Robinson, Mobileye Global and moreThese are the stocks posting the largest moves in midday trading.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »

Live Coverage: CPI inflation set to shake Gold, stocks, US DollarThe US Consumer Price Index (CPI) is the No.1 market mover as the Federal Reserve remains focused on battling rising prices.
Fonte: FXStreetNews - 🏆 14. / 72 Consulte Mais informação »

Bonds Outperform Stocks for the First Time Since April: A Sign of What's to Come?Market Overview Analysis by James Picerno covering: iShares S&P GSCI Commodity-Indexed Trust, Vanguard Total Stock Market Index Fund ETF Shares, Vanguard Real Estate Index Fund ETF Shares, Vanguard Total Bond Market Index Fund ETF Shares. Read James Picerno's latest article on Investing.
Fonte: Investingcom - 🏆 450. / 53 Consulte Mais informação »

A rotation trade from cash and bonds into stocks could push S&P 500 6500: UBSA rotation trade from cash and bonds into stocks could push S&P 500 6500: UBS
Fonte: Investingcom - 🏆 450. / 53 Consulte Mais informação »