Too much risk being ignored? [Video]
|Markets are holding steady despite a weekend full of warning signs: fresh tariff threats from the US, retaliation plans from the EU, and a sharp spike in global bond yields. While investors are banking on negotiations to smooth over the tension — and Nvidia’s China news adds a bit of optimism — cracks are starting to show. Japan’s 30-year yield hit multi-year highs, and US and European yields are climbing too, hinting at rising borrowing costs just as Q2 earnings season kicks off.
Are markets ignoring too many risks? From inflation pressures to currency mismatches and corporate margin squeezes, the disconnect between sentiment and fundamentals may not hold forever. CPI data, big bank earnings, and sovereign yields could hold the key to a potential summer shake-up.
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