Yield Curve Recession Signal Intensifies as War Fuels 'Stagflation' Fears
An inverted curve, where rates on short-term government debt exceed those on longer-term debt, has reliably predicted past recessions.
An inverted curve, where rates on short-term government debt exceed those on longer-term debt, has reliably predicted past recessions.
DJ Russia GDR Index, tracking London-traded Russian companies, plunged 98% in two weeks. The slump wiped out $572 billion market value of 23 stocks.
All in all, the stock market is hanging tough in what has been a turbulent two weeks for humanity.
The relative size of Russia, as well as the country’s limited dealings with U.S. firms, should contain the risk from a potential economic collapse.
With Russia’s stock market closed, U.S. exchange-traded funds are signaling the scale of the rout facing the nation’s equity market.
While Russian raw materials were so far exempted from sanctions, the threat of a severe dislocation to flows will increase as the conflict escalates.
JPMorgan is among the first Wall Street banks to take a stab at estimating the economic fallout for Russia from fresh Western sanctions.