Concerns about the economic situation in China and the resilience of the U.S. economy led to tensions in the bond and equity markets during the past month.

Although still inverted, yield curves in Europe flattened slightly in July. In other words, shorter maturities corrected more strongly than longer ones. Not surprisingly, while inflation in Europe was still measured at almost 11% at the end of October, it was halved last month to 5.5%. The financial markets are therefore expecting a final interest rate step at the end of this year.

Inverted yield curves, high inflation as well as purchasing managers' indices reported well below 50 in the industrialized world are clear signs of a recession. The stock market seems to be sure that the missing productivity can be realized in a very short time by means of artificial intelligence (AI).