Global Growth Narrative Stumbles As Nomura Warns “Best May Now Be Behind Us”
by Tyler Durden
ZeroHedge.com
Thu, 03/01/2018
The ongoing demise of the “synchronised global growth” narrative – which started showing up in macro-economic data disappointments world-wide over a month ago – is beginning to become evident in capital markets as Nomura’s Charlie McElligott points out that risk-asset weakness (and fixed income strength) hints at a growth peak and investor narratives shifting to a developing-acknowledgement that “the best may be behind us.”
Via Nomura’s Charlie McElligott
Punchline – Risk assets are getting heavy (SPX -3.1% over past three sessions; WTI -4.4%; Copper -3.5%; EMFX -1.1% all over same period, with NKY -1.6% and DAX -1.7% overnight)while USD and US rates continue to “pain trade” squeeze higher, as a fresh trough of data shows the global growth narrative in danger of shifting lower (“still expansive but slowing”). Effectively, the “synchronized global growth” story is now beginning to be questioned by investors who are now open to the “evolved” idea we’ve been discussing recently–that “the best is now behind us,” as financial conditions continue their nascent “tightening.”
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