© Reuters. FILE PHOTO: People carry Primark shopping bags after retail restrictions due to coronavirus disease (COVID-19) eased, in Belfast, Northern Ireland, May 4, 2021. REUTERS/Clodagh Kilcoyne/File Photo
By Saikat Chatterjee and Ritvik Carvalho
LONDON (Reuters) – A drubbing in world equity markets this week and a huge flight to safety into U.S.
Treasuries this week suggests investors now doubt that a much-anticipated return to post-COVID normality is feasible any time soon.
Data from the United States and China, which account for more than half of world growth, suggests a slowdown in the recent blistering pace of the global economy alongside rising prices for all manner of goods and raw materials.
Coinciding with a resurgence in the Delta variant of COVID-19, markets may be sending alarm signals about the global economic outlook, Deutsche Bank (DE:) chief FX strategist George Saravelos told clients.
“As prices have risen, the consumer has been cutting back demand rather than bringing forward consumption. This is the opposite...read more...