Global stocks slide as corporate results spur recession fears

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NEW YORK, Jan 26 — Global equity markets skidded yesterday as poor corporate results fuelled recession fears, as did the ongoing inversion of short — and long-dated Treasury...

NEW YORK, Jan 26 — Global equity markets skidded yesterday as poor corporate results fuelled recession fears, as did the ongoing inversion of short — and long-dated Treasury yields — a harbinger of economic downturns.

But with the Fed’s overnight borrowing rate at 4.25 per cent-4.5 per cent, it is “restrictive” and slowing growth, potentially causing large job losses in the next month or two that will lead the US central bank to cut interest rates by mid-year, he said. The yield on 10-year Treasury notes US10YT=RR was down 2.2 basis points to 3.445 per cent, well below the Fed’s projection that its target rate will stay above 5 per cent into next year.

Trade in European stocks was lacklustre, as signs of an improving economic outlook in the euro zone fed worries about further rate hikes.

 

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