Economic growth risks jolt inflation-obsessed markets

LONDON : After months focusing on central banks' response to raging inflation, financial markets are being jolted into the realisation that a global economic downturn may now loom.

On the data front, U.S. new home sales hitting two-year lows, weakening British and German consumer sentiment and new factory orders all point to slowing growth momentum. Still, with global inflation at multi-decade highs, the tensions with growth may play out over months, forcing investors and policymakers alike to walk the thin line between the two.

Graphic: Cyclical stocks - https://fingfx.thomsonreuters.com/gfx/mkt/znpnemkyqvl/Pastedper cent20imageper cent201650962778905.png It is probably too early to say a rethink is underway on where U.S. interest rates might top out, but money market expectations for the so-called terminal rate have eased since Friday by around 30 bps.

Energy Energy Latest News, Energy Energy Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

China's Huawei seeks out growth areas as risks mountSHENZHEN, China :Huawei Technologies has identified helping businesses to use 5G technology, cloud computing and to improve their energy efficiency as ways to bolster the company in the face of mounting challenges, its rotating chairman said on Tuesday.In 2019 the U.S. Trump Administration put Huawei on an ex
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »