Today we are seeing a recovery in the United States, where bond yields are rising. The 30-year bonds recently suffered a significant loss and investors were worried about the inversion of the curve, which traditionally signals a recession in the near future. However, today’s reports helped put investors’ minds at ease, at least for now.
Meanwhile, stimulus is shaping up to be a central topic today. The European Central Bank is gearing up to unveil a new round of stimulus measures, which can hopefully boost the economy and help the recently-slumping fundamentals stabilize. China is also reportedly considering an ambitious stimulus package with an increase in universal income. The Chinese economy is slowing down faster than anticipated, in part due to the troubles with international trade and the pressure exercised by the United States.
All of the stimulus talk has been good for the stock markets. We are seeing an overall recovery in many places in the world. Moreover, the markets haven’t had any surprises today, so risk appetite is somewhat higher now.
