Salient to Investors:
Moody’s Investors Service slashed credit ratings on 15 global banks yesterday.
Hiromasa Nakamura at Mizuho Asset Management said even Germany can’t avoid a slowdown, showing the instability of Europe’s financial system is affecting the region’s economy. Nakamura said the weakening global economy is leading to risk aversion among investors, putting downward pressure on Treasury yields.
Economists expect the German Ifo index in June to fall to the lowest since March 2010.
Bill Gross said risk markets are vulnerable as the monetary bag of tricks empties.