Debt markets are reacting to economic risks

Approaching the final quarter of the year, the global economy is facing increasing geoeconomic headwinds, as the Middle East energy crisis and America’s trade wars pose challenges to growth and inflation increases stress in the debt market. While the US economy, mostly propelled by tech-related spending, continues to outperform most other developed markets, the overall picture is an increasingly divergent one, with Europe and the UK lagging behind the US and risks growing in the backdrop.