Global Stocks, US Futures Slide As Interest Rates Resume Plunge
WW mkt and Economic news
(the 'doom' headline again as -66 on DOW is hardly plunging-come on tyler's get it together)
Monday's "recession off" optimism lasted just one day, and global markets and US equity futures are once again falling as yields resume their slide and the US yield curve inverts further.
After a brief respite on Monday when mortgage hedgers appeared to take the day off, treasuries resumed their rally with the 10Y yield tumbling as low as 2.35%* (see cap 4-watch it as "that's bad'' for the banks but not necessarily for real people-it's too bad that the drop in interest rates are not caried over to pepe/anons), following the slide in Bunds as Germany auctioned off its first negative yielding debt with a negative yield at auction, as investors again turned their attention to a deteriorating economic outlook and a shift toward accommodation by major central banks. As a result, stocks in Europe reversed gains along with U.S. equity futures.
Europe's Stoxx 600 fell, led by utilities and telecommunications shares, while S&P500 futures slipped, even though so far the selling is contained, with the Stoxx 600 down only ~0.4%, far cry from last Friday's 1.2% rout.
The MSCI Emerging Markets Index's 0.1% decline also looks tame compared with Monday's 1.1% slide. Cyclical sectors such as autos and miners are in the green - car makers in particular are getting a boost from Nissan-Renault M&A chatter - and declines are largely confined to bond-proxy sectors. Dividend-paying sectors such as consumer staples, real estate and utilities are outperforming in the lower-for-longer era, according to Bloomberg.
Mario Draghi said in a speech in Frankfurt an accommodative policy stance is still needed in the euro region, although he hinted at possible rate tiering, noting that banks are being hurt by NIRP.(translation: not enough spread or margin on the crap assets they have plus whatever new debt or products they need to issue-this is why Deutsche Bank and Commerz Bank are being talked about regarding a shotgun wedding)
Deutsche Bank, Commerzbank end rumors, announce merger talks
https://www.marketwatch.com/story/deutsche-bank-commerzbank-end-rumors-announce-merger-talks-2019-03-17
Earlier, Asian markets were mixed, though Chinese shares pushed higher as a burst of diplomacy suggests Beijing and Washington remain determined to de-escalate their trade war. Markets got a reminder of global growth risks after Chinese data showed industrial profits shrank the most since late-2011 in the first two months of the year. Chinese mainland shares bounced almost one percent as expectations deepened of more central bank stimulus.
Any terms sound unfamiliar? see this site
https://www.investopedia.com/
https://www.zerohedge.com/news/2019-03-27/global-stocks-us-futures-slide-interest-rates-resume-plunge
https://www.bloomberg.com/markets/stocks/futures
https://www.dailyfx.com/crude-oil
https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx