Global markets face rising stagflation risks, Tekedia Capital says
SPY•Persistent inflation and tighter financing conditions threaten growth, while oil fell about 15% this week to just below $100 a barrel but remains approximately 64% higher this year. US borrowing costs rose 85 basis points in the third quarter, and French and Italian yields increased more than 100 basis points.
1. Markets face growth risks
The brief says global markets face rising stagflation risks as persistent inflation and tighter financing conditions threaten growth. Higher bond yields could reduce cumulative eurozone growth in 2027 and 2028 by 100 basis points versus September projections, ECB estimates indicate. The Nasdaq had its steepest one-day decline since April 2025 on Thursday as investors questioned returns on AI infrastructure spending.
