All leaders of the Group of Seven rich democracies are concerned about a looming economic crisis as growth slows and inflation soars, German Chancellor Olaf Scholz said after a working session on the global economy at this year's annual G7 summit.
Safe-haven German bond yields were set for their first weekly fall since mid-May on Friday after growth fears gripped markets, though they reversed some of the drop after a German business sentiment survey indicated a recession was not yet in sight. Prior to this week, yields had risen sharply in the face of red-hot inflation and aggressive central bank rate hikes.
* S&P futures up 0.9%, European stocks gain 1.5% * MSCI world stocks eyeing 2.5% weekly rise. * Copper falls more than 7% on week, oil down 2% * German 10-year bond yields drop 4 bps. * By Carolyn Cohn.
The German government is considering converting parts of the Nord Stream 2 gas pipeline into a connection for a liquefied natural gas terminal on the Baltic Sea coast. Magazine Der Spiegel reported on Friday that the German economy ministry is considering expropriating the part of the pipeline system located on German territory and cutting it off from the rest of the pipeline.
The German government is considering converting parts of the Nord Stream 2 gas pipeline into a connection for a liquefied natural gas terminal on the Baltic Sea coast. Magazine Der Spiegel reported on Friday that the German economy ministry is considering expropriating the part of the pipeline system located on German territory and cutting it off from the rest of the pipeline.
German business morale fell more than expected in June but a recession was not yet in sight despite rising energy prices and the threat of gas shortages, a survey showed on Friday. The Ifo institute said its business climax index dropped to 92.3 following a reading of 93.0 in May, when the closely watched indicator posted a surprise recovery despite the economic impact of the Russia-Ukraine war.
* S&P futures up 0.7%, European stocks gain 0.82% * MSCI world stocks eyeing 2.4% weekly rise. * Copper falls more than 7% on week, oil down 3% * German 10-year bond yields drop 5 bps. * By Carolyn Cohn and Tom Westbrook.
Angst is growing in the German economy, Europe's largest, but as yet there are no signs of recession, Ifo economist Klaus Wohlrabe told Reuters on Friday. The threat of gas shortages has increased firms' uncertainty but bottlenecks in the industrial and retail sectors have eased slightly, he said.
German business morale fell more than expected in June, as rising energy prices and the threat of gas shortages unsettled businesses in Europe's largest economy, a survey showed on Friday.
Safe-haven German bond yields were set for their first weekly drop since mid-May on Friday in another demonstration of the extent to which growth fears have gripped markets this week. Prior to this week, yields had risen sharply in the face of red-hot inflation and aggressive central bank rate hikes.
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