Financial markets around the world tumbled on Wednesday as a slew of ominous data suggested economies are being pushed to the brink of recession by increasing trade tensions.
One of the most reliable recession signals flashed red at the same time as Germany’s economy contracted, eurozone growth was slashed in half and Chinese factories suffered a shock setback.
The US Treasury yield curve – one of the most closely watched harbingers of doom in bond markets – inverted for the first time since the run-up to the financial crisis.
The Treasury yield curve – the difference in the returns of two-year and 10-year US government bonds – has a formidable track record of predicting US recessions, sounding…
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