Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

GROWTH SCARE MORE LIKE A "TEMPORARY AIR POCKET" SAYS WFII

Markets appear to be increasingly concerned that economic growth is set to decelerate. In a little more than a month, the U.S. 10-year Treasury yield US10YT=RR has tumbled from the 4.80% area to below 4.30%.

Since yields are sensitive to anticipated levels of economic growth and inflation, Scott Wren, senior global market strategist at the Wells Fargo Investment Institute (WFII), says in his weekly market commentary note, that it would appear the market is "concerned that growth is set to slow."

Wren highlights that some of the economic data in February was "noticeably weaker than expected." Adding fuel to the fire, the Atlanta Fed's latest growth estimate for real GDP (gross domestic product adjusted for inflation), "GDPNow," for the first quarter of this year stands at -2.4%:

Wren adds that consumer sentiment and the latest readings on consumer confidence in February "tumbled relative to previous readings."

However, Wren says that not all economic data has been dismal.

He notes that consumer spending for services was robust during much of 2024, and he believes it continues to show potential to expand this year. Additionally, he says mortgage rates have fallen, and applications for home purchases are on an upswing.

Wren's sees a slowing economy as something like "a temporary air pocket" in the near term, and WFII continues to anticipate solid economic growth in 2025.

"We see market uncertainties creating opportunities in both equities and fixed income as the year progresses. Be patient, but be ready to act," writes Wren.

(Terence Gabriel)

*****

FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:

JUMP IN EUROPEAN BOND YIELDS COULD HIT DEMAND FOR US CORP CREDIT - CLICK HERE

ELECTRIC UTILITIES MAY BE A CHEAP WAY TO PLAY AI - CLICK HERE

ON THE VERGE: JOBLESS CLAIMS, LAYOFFS, TRADE BALANCE - CLICK HERE

U.S. STOCKS TAKE IT ON THE CHIN IN EARLY TRADE - CLICK HERE

NASDAQ COMPOSITE: IS THERE AN OFF RAMP ON THE CORRECTION HIGHWAY? - CLICK HERE

RECESSION THREATS RISING- MERCER - CLICK HERE

GERMANY'S FISCAL OVERHAUL COULD BUFFER EUROZONE IF US TARIFFS MATERIALISE - UBS - CLICK HERE

LUXURY: ARE WE OUT OF THE WOODS? - CLICK HERE

STOXX SLIPS DESPITE MODERATING TARIFF FEARS AND POSITIVE EARNINGS - CLICK HERE

EUROPE BEFORE THE BELL: FUTURES UP AS TARIFF TENSIONS EASE - CLICK HERE

ECB'S LAST EASY DECISION - CLICK HERE