MILAN/SINGAPORE—World stocks eased on Wednesday and bonds remained supported after a chorus of Wall Street bankers warned about a likely recession ahead, tempering optimism about China’s major shift in its tough zero-COVID policy.
Top executives at Goldman Sachs, J.P. Morgan, and Bank of America all sounded downbeat in remarks on Tuesday about the economic outlook, hurting risk appetite globally and triggering fresh recession signal from bond markets.
“Yields have accentuated the downward trend, which is somewhat of a novelty. In previous phases of risk aversion bonds tended to fall along with stocks, precisely because the risk-off mood was driven by fears over inflation and monetary policy,” said Giuseppe Sersale, fund manager at Anthilia in Milan….