RISK OF RECESSION IN 2020 EXACERBATED BY CRUDE OIL PRICE CRASH & CREDIT CRUNCH AS CORONAVIRUS CONCERNS BUILDRecession threat
RISK OF RECESSION IN 2020 EXACERBATED BY CRUDE OIL PRICE CRASH & CREDIT CRUNCH AS CORONAVIRUS CONCERNS BUILD
- Recession threat may very well be ratcheting even greater after the price of crude oil crashed over 20% in a single day
- Odds of a recession this 12 months have probably risen once more amid one other spike in credit score default threat on high-yield company bonds
- The novel coronavirus outbreak has wreaked havoc on the worldwide provide chain and contributed to a contraction in US enterprise exercise
What Markets are Rising as the Dow Jones and Oil Collapse?
Panic-struck inventory market buyers appear to have taken discover of the rising probability that we’re going right into a recession within the not-too-distant future. A staggering selloff throughout international equities over latest weeks, pushed initially by anticipated financial fallout from the coronavirus, has gained tempo after the most recent destabilizing black-swan occasion: a crash in crude oil costs.
RECESSION RISK BACK ON THE RISE – PROBABILITY OF US RECESSION PREDICTED BY TREASURY YIELD CURVE SPREAD
In line with the Federal Reserve, the chance of a US recession occurring over the subsequent 12-months, as predicted by the Treasury yield curve unfold, was clocked at 31% on February 28. Though distressed credit score markets caught a breather following an emergency Fed price minimize final week, its first because the global financial…