Yield Curves Invert in U.S., U.K. as ‘Doom and Gloom’ Spreads; U.S. Inflation Picks Up in July as Core Prices Strengthen

  • The stream of investors seeking refuge in the safest parts of the market has triggered yet another recession warning, with yield curves inverting from the U.S. to the U.K.
  • Weaker-than-forecast Chinese retail sales and industrial output set the mood for the markets, with data showing Germany’s economy contracted, adding to the gloom
  • This move has been a long time coming, and reflects a significant escalation of growth concerns

  • The consumer-price index, which measures what Americans pay for items rose a seasonally adjusted 0.3% last month from June
  • A tight labour market and tariffs imposed by the Trump administration on many imported goods are starting to push inflation higher
  • Price increases were broad-based but particularly driven by energy, which partially reversed a decline in June, and services such as health care, shelter and transportation