Why global financial markets are walking a tightrope
1 year, 2 months ago

Why global financial markets are walking a tightrope

ABC  

If the past few months are anything to go by, the era of dependable double digit super returns may be drawing to a close. Longer term, they have upended trading patterns and drawn the curtain on almost three decades of global trade liberalisation, ushering in a new Cold War that's threatening to turn hot. That's left money managers dazed and confused, a phenomenon on stark display during the past month as global interest rates soared to 15 year highs before suddenly reversing on hopes America was done with official rate hikes and then late last week doing another about face. How a 'sharp deterioration' in China's property market could affect housing affordability in Australia Photo shows Chinese flags near the logo Evergrande Centre in Shanghai, China, on September 24, 2021. Australia's biggest trading partner is facing its biggest economic slowdown in decades, and the Reserve Bank has warned that stress in China's economy will be felt across the world — including here in Australia.

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History of this topic

Keep eye on global interest rate cuts for market moves
3 months, 3 weeks ago

Keep eye on global interest rate cuts for market moves

New Indian Express  

Indian markets are hitting new highs and defying the ‘September effect’, considered the worst month for global stock markets. The sharp rally driven by banking, IT and auto stocks gained strength from a host of factors including interest rate cuts in the US, China and Europe. A bigger cut would confirm the worst fears of a hard landing for the …

Why property and stock markets are thumbing their noses at rate hikes
6 months, 1 week ago

Why property and stock markets are thumbing their noses at rate hikes

ABC  

This time it's different. Photo shows RBA governor Michele Bullock at press conference Rate rise after rate rise should have sent the economy into a tailspin, but the RBA isn't fighting a textbook case of inflation. And it's seen central bankers scrambling to try to nut out just why developed economies aren't reacting to interest rate hikes the way they …

Global debt surges to record high as borrowing costs bite
10 months, 2 weeks ago

Global debt surges to record high as borrowing costs bite

The Telegraph  

Global debt has surged to a record high of $313 trillion, as higher interest rates drive up borrowing costs for companies and governments worldwide. Jan Friederich at Fitch Ratings said higher borrowing costs mark “a quite substantial change from the environment of. Speaking at the launch of the IIF’s Global Debt Monitor he said that “average interest expenditure relative to …

Why the world is drowning in debt – again
1 year, 2 months ago

Why the world is drowning in debt – again

The Telegraph  

Emre Tiftik, a director at the IIF, believes countries have become addicted to debt. And there’s this omnipotent feeling that central banks and governments can manage all of this stuff I’m cautious.” Mohamed El-Erian, chief economic adviser at Allianz, says the debt reckoning will not hit countries equally. “While debt burdens are rising in most countries around the world, the …

Why are bond yields surging around the global markets? - Explained
1 year, 3 months ago

Why are bond yields surging around the global markets? - Explained

Live Mint  

Over the past six months, the international bonds yield has been on a haywire. Sustained expectations of inflation are likely to keep yields above this conventional range, potentially detrimental to economic growth and the stock market, as both household and corporate spending face constraints. The prevailing high bond yields are primarily driven by the market demands for premiums when investing …

Why are global bond yields rising?
1 year, 4 months ago

Why are global bond yields rising?

Live Mint  

Global bond yields are flaring up to the levels unseen in years, drawing support from strong macroeconomic data that makes a case for continuing with the monetary tightening policy through interest rate hikes. The US treasury yields have climbed almost 40 bps month-to-date amid rising bets that interest rates will remain elevated for longer. However, while the 10-year US yield …

Why the stock market is bloody, crypto’s getting massacred, and traders are screaming like they’re extras in Carrie.
2 years, 7 months ago

Why the stock market is bloody, crypto’s getting massacred, and traders are screaming like they’re extras in Carrie.

Slate  

Over the last few weeks, following the financial markets has felt a bit like watching the prom scene from Carrie—the party’s over, there’s blood all over the floor, and flames appear to be eating the building while the whole crowd runs screaming for the exits. Still, we’re in the midst a serious fall: Investors traditionally say it’s a “bear market” …

End of an era of cheap money?
3 years, 1 month ago

End of an era of cheap money?

The Hindu  

THE near-relentless bull run on India’s stock markets seems to be faltering, with signs of a descent from recent peaks. After promising not to retreat until well into next year from its “unconventional monetary policies”—injecting liquidity by buying bonds and keeping interest rates near zero—adopted since the 2008 financial crisis, the Fed has shifted gears. Soon, a retreat from the …

EXPLAINER: Why rising rates are unsettling Wall Street
3 years, 10 months ago

EXPLAINER: Why rising rates are unsettling Wall Street

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Interest rates keep marching higher, …

The secret behind the booming stock market in the face of the coronavirus crisis
4 years, 6 months ago

The secret behind the booming stock market in the face of the coronavirus crisis

ABC  

Forget everything you've ever learned about the economy and the supposed link with financial markets. Just three months into what the Bank of England describes as the deepest and sharpest downturn in centuries and stock markets are on a tear, galloping back towards record levels at breakneck speed. Don't even think about thinking On Thursday night, Jerome Powell, the head …

Here’s what could really sink the global economy: $19 trillion in risky corporate debt
4 years, 9 months ago

Here’s what could really sink the global economy: $19 trillion in risky corporate debt

CNN  

London CNN Business — Companies have spent the years since the global financial crisis binging on debt. “This certainly is another match being lit the bonfire of corporate debt liabilities,” said Simon MacAdam, global economist at Capital Economics. “There’s definitely potential for systemic risk.” The coronavirus shock Investors became increasingly anxious about corporate debt this week as stocks sold off …

Coronavirus shook the foundations of a global stock market powered by debt
4 years, 10 months ago

Coronavirus shook the foundations of a global stock market powered by debt

ABC  

The news over the weekend was nothing short of grim. While western governments are sheeting home the blame for last week's market carnage on the virus, a much more sinister and barely concealed problem lurks at the heart of our financial system. Last October the International Monetary Fund warned that up to $US19 trillion of corporate debt could be "at …

Global stocks fall as central bank reassurances fail to ease virus fears
4 years, 10 months ago

Global stocks fall as central bank reassurances fail to ease virus fears

CNN  

New York / Hong Kong CNN Business — US stock futures and markets in Europe fell Monday despite reassurances from the world’s central banks that they stand ready to help limit the economic and financial damage caused by the novel coronavirus outbreak. The losses follow a brief respite for stocks in Asia, which rebounded after Bank of Japan Governor Haruhiko …

Stock Indexes Drop As Bond Market Flashes Recession Warning
5 years, 9 months ago

Stock Indexes Drop As Bond Market Flashes Recession Warning

NPR  

Stock Indexes Drop As Bond Market Flashes Recession Warning Enlarge this image toggle caption Spencer Platt/Getty Images Spencer Platt/Getty Images The stock market tumbled Friday as investors digested an ominous warning sign: Interest rates on long-term government debt fell below the rate on short-term bills. "We don't see that occur that often, but when it does, it's almost always bad …

How central bankers blew up the global economy
5 years, 9 months ago

How central bankers blew up the global economy

ABC  

We humans are a social lot. And so, in July two years ago, when the groundswell of opinion began to shift — that the Reserve Bank would be raising interest rates — arguing otherwise was a fairly lonely position. "Evidence points towards a rise in global wealth concentration: for China, Europe and the United States combined, the top 1 per …

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