Asian stocks fall as declining US yields, trade woes knock sentiment
Asian stocks fall as declining US yields, trade woes knock sentiment
Global stocks dive on growth concerns, doubts over trade truce
08 December, 2018, 03:49
Markets across the world have been rattled by recession fears, exemplified by the flattening U.S. Treasury yield curve.
The greenback, which started the week on a weak footing as the apparent thaw in trade tensions between the US and China cooled demand for the safe-haven currency, extended its fall as investors anxious about the inversion of the short end of the USA yield curve in bond markets.
In short, a yield curve is a way to gauge the difference between interest rates and the return investors will get from buying shorter- or longer-term debt.
A typical yield curve includes much higher interest rates for maturities further into the future.
For the most comprehensive local coverage, subscribe today.
Asian stocks slid on Wednesday, dragged down by Wall Street's tumble as sharp declines in long-term U.S. Treasury yields and resurgent trade concerns stoked investor worries about global economic growth.
Yield curve inversions are seen generally as precursors of a recession. On Monday, the yield on the five-year Treasury note slipped below yields on shorter-dated three-year notes, according to a report in Bloomberg.
The dollar index fell 0.07 percent, with the euro down 0.1 percent to $1.1341.
No, at least not yet. That signalled to some investors an approaching USA economic slowdown. A rate hike however, while signaling confidence by the Fed, would continue to make financing more expensive for firms and households.
German 10-year yields are also being pushed down by domestic concerns, Commerzbank's Rieger said, with European growth indicators sagging and Italian political concerns rumbling on in the background.
Global stocks sank and the dollar fell on Tuesday as a flattening Treasury yield curve sparked recession warnings, while optimism that the US and China would quickly resolve their trade dispute dwindled.
Of course, that's still "pretty doggone tight", said Randy Frederick, vice president of trading and derivatives at Charles Schwab.
The Dow Jones Industrial Average fell 799.36 points, or 3.1 percent, to 25,027.07, the S&P 500 lost 90.31 points, or 3.24 percent, to 2,700.06 and the Nasdaq Composite dropped 283.09 points, or 3.8 percent, to 7,158.43.
While Fed officials have begun pointing to "headwinds" from slowing global growth and other risks, it won't be clear how much this has changed their outlook until they issue fresh economic projections after the December 18-19 policy meeting. That particular inversion has preceded every recession since the late 1970s.
Whether or not the 3-month to 10-year spread inverts may very well depend on how many more hikes the Fed gets in.
Even if the more important parts of the yield curve flip to inversion, that doesn't mean a recession will happen the next day.
Bob Michele, who heads global fixed income for JP Morgan's investment arm, said he doesn't expect the USA yield curve to invert, but he was watching it closely.
Actually, I expect a recession before that portion of the curve inverts.
The cassette EV powertrain sits on the original engine and gearbox mountings and is enclosed in its own self-contained cell. The only cosmetic change is a touchscreen that's been "discreetly fitted" into the cabin to monitor the power outlay.
The goal is to help Edge play better with current Web standards and with other Chromium-based browsers, such as Google Chrome. In the meantime, the company said it plans to become a bigger contributor to Google's Chromium project, which is open source.
Castillo, 37, played in the majors as an infielder from 2004 to 2008 with the Pirates, Giants, and Astros. He also played for the Mariners, Indians, Cubs and Astros during an 11-year career that began in 2008.
InSight science team member Tom Pike says the lander acts like a giant ear as the solar panels respond to the wind. Readings from the air pressure sensor have been sped up by a factor of 100 times to make them audible.
Both have prominent backers, though many CDU grandees - including the chancellor - have held off publicly endorsing a candidate. Kramp-Karrenbauer is 56 and Merz 63, only a year younger than the chancellor.
After a missing person report was filed, New Zealand police released an image of Ms Millane at a late night casino in Auckland. He said they were waiting for the British banks to update them on when Grace Millane's credit cards were last used.
The Allen, Texas, product has completed 241 of 340 passes this year for 4,053 yards and 40 touchdowns to seven interceptions. Tagovailoa received 13 first-place votes (117 points) and Haskins was listed first on four ballots (55 points).
The six-inch-wide blood clot that was coughed up by an unnamed patient in the near-perfect shape of his right bronchial tree . Sadly, despite the best efforts of the medical team, the man died a week after coughing up the bronchial tube cast.
Daimler chairman Dieter Zetsche told reporters that additional USA investments are contingent on conditions remaining the same. Ben Sasse, a Nebraska Republican and opponent of Trump's tariff policy, criticized the president's tweets on that basis.
Fiat Panda scores a shocking 0 star safety rating in crash test
In fact, the Panda has become only the second vehicle ever to be awarded 0 star rating ever since Euro NCAP was founded in 1997. Child protection was rated at 69 per cent, although points were lost for marginal head protection in the lateral crash test.
Huawei executive faces fraud charges in US
He argued the financial institutions that did business with Huawei were the "victims" of those misrepresentations. Since then, Huawei has grown into the world's biggest supplier of network gear for phone and internet companies.
SpaceX to Launch Dragon Resupply Mission Wednesday
The International Space Station now has six crewmembers; three arrived Monday (Dec. 3), and three have been there since June. SpaceX was scheduled to launch the Falcon 9 carrying the supplies on Tuesday but delayed the launch until Wednesday.
Trump Says Trade Talks With China 'Going Very Well'
China's ultimate goal during the 90-day trade talks is to remove all US tariffs imposed on Chinese goods, Gao said. China had been the largest purchaser of US soybeans, buying $12.25 billion worth of that product in 2017.
Rap star Kendrick Lamar, women nominees lead Grammy race
Noah Shebib, another one of Drake's collaborators, is recognized with four nominations for songs from the Scorpion album. Barbra Streisand's THE MUSIC.THE MEM'RIES.THE MAGIC! is nominated for Best Traditional Pop Vocal Album.
Trump intends to nominate William Barr as next attorney general
Trump heavily derided Mueller's team earlier this year for being comprised of many registered Democrats and Democratic donors. Senate Majority Whip John Cornyn, a Texas Republican who sits on the Judiciary Committee, called Barr an "interesting pick".