Quotes
Aside from ongoing worries about a US recession, the continuation of the pressure on markets has been attributed to the unwinding of the yen carry trade and geopolitical fears surrounding an expected Iranian military retaliation against Israel after Israel killed a high-ranking Iranian military official,
said Briefing.com analyst Patrick O'Hare Investors are gripped by fears that the Federal Reserve has waited too long to pivot on its policy, especially in light of Friday's disappointing US jobs data and a slew of other weak economic indicators pointing toward a looming recession,
said market analyst Fawad Razaqzada at City Index and FOREX.com The [US Federal Reserve] is facing criticism for its handling of interest rates. Initially, it was slow to raise rates to combat inflation, and now, as economic growth slows, there are fears it’s moving too slowly to cut them. This has created uncertainty, making markets jittery and raising fears of a recession.”
Nigel Green CEO of deVere Group said As the market is forward looking, it can be a signal that the global economy is weakening, to the extent that the risk of a US recession is rising. That is a reasonable assessment of the US, although the risk of recession in the next year still remains low.”
The latest figures from the ONS show we grew by another 0.7 percent in the period April to June 2024.
The meaning for people is that there is less abundance of products available and less chances of increase in disposable income, often accompanied by sustained inflation.”
In regards to a recession, Professor Mongiello said While the ... The price moves themselves don’t typically lead to recession on their own.”
Lindsay James, investment strategist at Quilter Investors told Express.co.uk The fact that in the UK, wages are continuing to rise well ahead of headline inflation is a more meaningful driver of consumer spending, at a time when interest rates are now being cut.”
This shift highlights the vulnerability of US markets to changes in global financial dynamics. The drop in US stock prices as the yen strengthens is a clear indicator of how interconnected global economies have become.”
But there could also be another trigger for a global market sell-off: Japan, the world's third-largest economy.”
To put it mildly, the spike in volatility-of-volatility is a spectacle that underlines just how jittery markets have become,
Stephen Innes of SPI Asset Management said in a commentary Investor sentiment was down as the U.S. employment data for July came in lower than expected, raising fears that the U.S. economy is slowing more than expected,
IwaiCosmo Securities said We have seen the highest wage increase in 33 years during this year’s Spring Labor Negotiations, also capital investment has exceeded over 100 trillion yen, and the stock market has reached a historical high, all of which are positive developments,
Odds of a soft landing will increase if China weakness leads to a deeper plunge in WTI, pushing down inflation further, and allowing the Fed to be more aggressive,
With the soft employment report, the NASDAQ correction, the plunge in bond yields, and the plunge in commodity prices, it's possible we're seeing recession signals coming home to roost,
Hyman wrote in a Sunday note Markets are caught in an aggressive risk-unwind as equities plunge around the world, with tech getting hit particularly hard,
he wrote in a note Monday The pan-European STOXX 600 index was down 3.1% to 482.42 points by 0711 GMT, hitting its lowest since Feb. 13. The benchmark is also set for its worst day in 2-1/2 years.”
There’s a number of pillars of support still there with balance sheets of corporates and households that aren’t that geared,
Frankly, the market has started pricing in bad news as bad news,
said Omkar Joshi, chief investment officer at Opal Capital Management The scenario of higher unemployment constraining spending and further restraining hiring and incomes and economic activity leading to a recession is the feared scenario here.”
Tan Boon Heng of Mizuho Bank in Singapore said