European selloff highlights resumption of US treasury bear flattening

This morning, US stock futures are pointing to triple-digit losses after declines in Europe and in Asia. And the European indices are at a one-year low. There are quite a number of proximate causes for the weakness. But the overriding fear, as evidenced by the flattening of the US yield curve, is that the global economy is beginning to slow.

Secondary markers I look at include oil and gas prices. In a world of continued growth, sparking fears of overheating, we should see oil and gas prices continuing to rise. Instead, we are seeing these prices roll over. WTI is trading around $68 a barrel, down from a high at the beginning of the month over $76. Brent is a shade under $78, and also down over $8 a barrel in the same time frame. Gasoline and natural gas futures are also down in that time ...

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