Ditch Risk Is the Second Half Mantra as Recession Spooks Traders

Global risk assets were at the epicenter of a selling spree Friday as investors kicked off the second half of the year with recession concern front and center.

Stocks and equity futures from Japan to the US tumbled, extending their historic first-half rout, while every Group-of-10 currency fell against havens, the dollar and the yen. Commodities retreated while global bonds continued their late-June rally.

“Recession worries are dominating markets right now and investors are ditching risk,” said Diana Mousina, senior economist at AMP Capital. “In the short term, fears around a slowdown and hawkish central banks means more downside than not.”