“Would we have entered a third global financial crisis? “ After the subprime crisis in 2008 and sovereign debt in 2011: economists in Capital Economics are openly questioning, while at the beginning of the week the financial markets are experiencing a new depression. Monday was a black day and, in the space of a month, they lost more than 10%. “We are not there,” said Frédérik Ducrozet, economist at Pictet, who nonetheless points out that investors usually sell certain financial products to prefer others, whereas since the beginning of The year is the whole financial planet that convulses in unison: actions,
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A brief overview of what is causing investor fears.
- The breakdown of the Chinese economy
This is one of the subjects of interrogation that weighs on the markets. Especially since a new statistic came to revive the anxiety of investors, Sunday, February 7. The country’s foreign exchange reserves fell by $ 99.5 billion in January to $ 3,200 billion, the lowest level since May 2012. Beijing sells dollars to support The yuan, which suffers from the economic slowdown and poor communication from the financial authorities.
- The risk of recession in the United States
The hearing of Janet Yellen, the boss of the Fed (US Federal Reserve), before the US Congress on Wednesday 10 and Thursday 11 February will be particularly scrutinized. For fears of a stronger economic downturn than expected in the United States are keen. To the point that “some are starting to believe that the Fed could have made a serious mistake by raising its key rates on December 16, while the risk that the economy is entering recession seems to them to have increased, “ analysts explained Aurel BGC .
- Banks in turmoil
At the epicenter of the stock market quake are banking stocks. The phenomenon is for the moment centered on Europe : since the summer of 2015, the actions of the major European banks are in turmoil. They must especially be facing rising risks linked to commitments on emerging markets or the energy sector. However, with a free-falling barrel price, numerous montages that have helped finance production investments, particularly in shale gas in the United States, are no longer needed and will have to be renegotiated