Market Comment | Mounting fears on global economic growth renew the risk-off mood.

Summary

Yesterday’s upward move spurred by some positive news in the trade front faded. Stock markets fell and government bonds resumed their rally as weak economic data from Germany and China renewed investors concerns on global economic growth.

Key points

• Key points:
• Germany’s flash GDP shrank in the second quarter, reinforcing markets expectations for the ECB to relax monetary policy to stimulate the economy.
• The 30Y U.S. Treasury yield and the 10Y German bond yield hit record lows.
• Flight to safe-haven currencies.
• American and European stocks slumped.

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