July 3, 2022
1 min read

2022 may bring more bad news for US markets

Japan might finally be forced to relent and allow bond yields to rise, which would suck back cash the country’s investors had poured overseas…reports Asian Lite News

US markets are beginning to fear that they are not even halfway through the bad news the year 2022 has in store, media reports said.

The first six months were full of surprises: Inflation, the biggest selloff in bonds in four decades, a plunge in tech stocks rarely matched in history, and the implosion of crypto, the Wall Street Journal reported.

The looming risk that investors ignored for months is recession. But whether the economy will slump or be just fine remains unknown. Attempts to put a probability on it range from 90 per cent in a Deutsche Bank survey of clients to the spurious precision of 4.11 per cent in the New York Federal Reserve’s recession forecasting model.

While investors are at last focused on recession uncertainty, risks elsewhere in the world could hit the US investors too.

Japan might finally be forced to relent and allow bond yields to rise, which would suck back cash the country’s investors had poured overseas.

“In Europe, the central bank has promised a new plan to support Italy — but we’ve seen this show before. If it follows the pattern of too little, too late, we could see a return of the eurozone debt crisis, something the markets are not prepared for,” Wall Street Journal reported.

Almost any economic outcome is likely to prove a fresh surprise. If there’s a soft landing, stocks should do well as the recent recession panic reverses.

If there’s a recession, there could easily be a big loss still to come, since only the drop of recent weeks appears to be related to the recession risk, the report said.

ALSO READ-Community to convert single-use plastic into reusable bags

Previous Story

France, Australia move beyond AUKUS

Next Story

India slams US religious panel report

Latest from -Top News

Deadly Fever Grips Senegal

Currently, there is no vaccine or antiviral treatment approved for human use against RVF. Senegal is facing a growing public health emergency as the death toll from a Rift Valley Fever (RVF)

Protest Crackdown in Abidjan

The protest ban came just a day before the planned march, with the prefect of Abidjan declaring all gatherings illegal to “preserve public order” ahead of the polls. Authorities in Ivory Coast

Seychelles Chooses Herminie

Herminie’s win gives his United Seychelles party full control of government after it reclaimed a parliamentary majority during last month’s general elections. Seychelles’s opposition leader, Patrick Herminie, has emerged victorious in the

Fragile Peace Returns to Gaza

Carrying bags, blankets, and a few salvaged belongings, families walked through the dusty highway under the afternoon sun. Many pushed carts or led donkeys loaded with what was left of their possessions.

Egypt to Host Gaza Peace Talks

Cairo summit aims to end war and open a new chapter for regional stability. The summit will gather leaders and senior officials from more than 20 countries, including the United Kingdom, France,
Go toTop

Don't Miss

US: Union, corporate ties sizzle as Summer of Labor heats up  

Financial analysts estimates that a 10-day UPS strike could be

US Land, air borders reopens to foreign visitors

The new rules allow air travel from previously restricted countries