The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Bond Outlook May 28th

High oil prices and a credit squeeze together: no coincidence. In fact, knock-on and secondary effects of the cheap money policy of the USA are our themes this week.

Bond Outlook [by bridport & cie, May 28th 2008]

Often have we written of living through a historic change in the world’s economy. Two events this week epitomize that shift’s two main features:

 

  • The relative decline of US economic dominance with consumers’ confidence reaching a 16-year low and house prices’ decline reckoned to be only half way to a total of 30% drop from the peak in 2006
  • The end of cheap oil with the price per barrel reaching USD 135 and the media concentrating on its effects in the real economy

 

Fortunately it is not our responsibility to forecast stock market behaviour, but we cannot but wonder how a drop back in oil to USD 129 can provoke a stock market rally.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of acces below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£68.33 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree