Fears that we’re heading for another recession have sent markets into a spin, say reports in Portugal today, stressing that Lisbon’s bond market “hasn’t escaped”.
European stocks ‘slid’ by around 2%, with the price of petrol falling and gold seeing a new spike.
Says ECO online, investors are flocking to buy up ‘the yellow metal’ as economic jitters set in.
In the capital, shares in BCP Millennium fell by 4%, with Galp Energia and EDP also registering significant falls.
Fears seem to have heightened following news that GDP growth across Europe is minuscule while Germany is headed for ‘contraction’.
President Trump fanned the flames yesterday by denying categorically that the US was in danger of recession.
The consensus was that as Mr Trump’s grasp of the truth is subjective at best, this was possibly another clear example that we have to look beyond the rhetoric.
All in all, the stage seems to be set for a new round of economic doldrums.
But there is a positive in the gloom. With the value of gold climbing (as so often happens in times of recession, or threats of it), the stocks held by Portugal have leaped in financial terms.
Says ECO, “just this year the gold in the coffers of the Bank of Portugal has increased in value by 2.7 billion euros”.
For more about Portugal’s gold reserves (click here).
