World Economy

摘要

1. Global financial conditions have deteriorated sharply in recent months. From their May peaks, global stocks have now over 15%, spooked by weak data, the downgrade of the US's AAA credit rating, and the Eurozone sovereign debt crisis which continues to worsen despite July's new aid package for Greece. 2. On top of this, there are worrying signs of financial contagion spreading through other asset markets. High-yield corporate spreads have risen sharply, especially in the Eurozone. The Eurozone interbank borrowing spread has also jumped, signalling growing problems in bank funding markets.