Not exact matches
Arguably more concerning is the fact that these dropping
oil prices indicate a slowing
global economy, and that we are potentially already in a deflationary spiral and admit no wit or wisdom to get out.
The moves higher in
global stock markets have been accompanied by a recovery in
oil prices to over $ 48 a barrel, receding worries about the Chinese economy, and the U.S. Federal Reserve
indicating it is in no hurry to tighten policy.
That trend towards higher inflation expectations continued into U.S. inflation expectations,
indicating that the ECB QE announcement, and coincident with tentative signs of stabilization of
oil prices, may mark the low point of deflationary fears driving
global interest rates to new lows.
The US Fed
indicated further moves would be dependent on
global factors and
oil prices — a key detail signifying that future rate hikes seem likely to develop on a slower scale, causing a European government bond market rally on Thursday, sending yields lower in the region.