Goldman Sachs forecasts 30 per cent chance of US economy tipping into recession: Report

Must read

Goldman Sachs, an American multinational investment bank and financial services said it now thinks there is a 30% chance of the U.S. economy tipping into a recession over the next year, up from its previous forecast of 15%, as reported by Reuters.

Wall Street was set to open higher on Tuesday and European shares were set for the second day of gains, recovering slightly from last week’s 17-month lows, but major central banks’ rate hike plans and global recession risks kept investors cautious.

World stocks have edged higher so far this week, recovering from last week’s sharp sell-off which saw global equities tumble to their lowest since November 2020 as expectations for central bank policy tightening to combat high inflation prompted investors to ditch risky assets.

But, analysts expect the bounceback to be short-lived. Timothy Graf, head of macro strategy for EMEA at State Street Global Markets, said the move higher was likely a result of markets being oversold in recent weeks and relief that event risks, such as the Bank of Japan and Swiss National Bank meetings, have passed.

Also Read: Russian television broadcasted in Ukraine’s Kherson

Oil prices rose as investors focused on tight supplies of crude and fuel products. Brent crude futures were up 1.1% at $115.38 while U.S. West Texas Intermediate (WTI) crude futures were up 1.4% at $111.13. Gold was little changed at around $1,832.6 an ounce. 

Bitcoin was up around 3% on the day at $21,173, having stabilised slightly since it plunged to as low as $17,592.78 at the weekend. Cryptocurrencies have increasingly become a metric of risk appetite, State Street’s Graf said.

(with inputs from agencies)



You can now write for and be a part of the community. Share your stories and opinions with us here.

Source link

More articles

- Advertisement -


Will Micro VCs Bring A Paradigm Shift In Indian Startup Funding?

Founders’ needs have evolved over the years, and they demand different products from the investor ecosystem, says iSeed’s Utsav Somani The investment thesis for...
- Advertisement -

Latest article