Global Markets: Concerns of global recession abound

By MarketsFarm

WINNIPEG, Aug. 14 (MarketsFarm News) – The following is a glance at the news moving markets in Canada and globally.

– Recent economic data from numerous countries has stoked fears of a global recession. China and Germany have reported data that points to a cooling economy for both countries, and the yield curve for United States treasury bonds has inverted. That means two-year Treasury yields have risen above 10-year yields, which is a historical predictor of economic recession.

– A report from the U.S. Department of Labor released on Wednesday indicated that inflation could remain moderate, despite a substantial increase in prices for consumer goods in July. The Federal Reserve may cut interest rates again in order to limit damage to the U.S. economy from the trade war with China.

– The Argentine peso was weaker on Wednesday morning due to President Mauricio Macri’s announcement that he would cut income taxes for workers and increase social services. These comments come after President Macri was unexpectedly challenged by opposition candidate Alberto Fernandez in the country’s primary election earlier this week. Macri also announced he would freeze gasoline prices for 90 days in order to reduce the impact of economic turmoil in the country.

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