Fears US economy headed towards recession spark jitters across global markets
4 months, 2 weeks ago

Fears US economy headed towards recession spark jitters across global markets

ABC  

There are genuine concerns the world's largest economy is heading toward a recession, and the fear is gripping global financial markets. "Shares went sky high into July on the back of better news on inflation, increasing optimism about lower interest rates ahead and optimism about IT and AI-related earnings," Mr Oliver, who manages $3 billion in investments, said. The US Federal Reserve announced late this week it was leaving official interest rates unchanged at between 5.25 per cent and 5.5 per cent. "Our view remains that lower interest rates will boost shares on a six to 12 month, view assuming recession is avoided," Dr Oliver said. "However, in the next few months global and Australian shares look vulnerable to further falls, suggesting that it's too early to buy the dip just yet as: valuations are stretched; investment sentiment looks somewhat optimistic; recession risk is high; there has been a heavy reliance on tech shares to keep the key US share market going.

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