Investors spy the dawn of a tectonic shift away from US markets
China unlocked more stimulus on Wednesday and promised greater efforts to cushion the impact of an escalating U.S. trade war. Hours earlier, Germany's likely next government agreed on the biggest overhaul to fiscal policy since the country's reunification.
In response, German bonds cratered in the most dramatic selloff in decades, as 30-year yields shot up by a quarter of a percentage point on Wednesday, with the selloff entering a second day on Thursday.
Meanwhile, U.S. economic data points to a weakening, and the trade war unleashed by U.S. tariffs that kicked in this week is hurting sentiment inside and outside the world's biggest economy.
For most of the last three years, investors had bet on «U.S. exceptionalism,» with the country ahead of others in economic growth, stock prices, artificial intelligence and other areas.
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