'Flashing amber': Global stocks tumble, bonds rally on US recession risk

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Investors ditched shares on Monday and fled to the safety of bonds as risk assets fell out of favor on growing fears of a U.S. recession, sending ...

SYDNEY: Investors ditched shares on Monday and fled to the safety of bonds as risk assets fell out of favor on growing fears of a U.S. recession, sending global yields plunging.

"The bond market price action is an enormous blaring siren to anyone trying to be optimistic on stocks," JPMorgan analysts said in a note to clients. "The risk of a U.S. recession has risen and is flashing amber and this will keep markets pricing a high chance of the Fed cutting rates," said London-based NAB strategist Tapas Strickland.

"We suspect that drawing a recession conclusion from such data is not warranted until the 3M-10Y yield curve is inverted by a substantial amount," Carnell said."Just inverted as today's markets indicate, doesn't do it for me."Much of the concerns around global growth is stemming from Europe and China which are battling separate tariff wars with the United States.A nearly two-year U.S.

Rupert Murdoch's Sun newspaper said in a front page editorial May must announce on Monday she will stand down as soon as her Brexit deal is approved.

 

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