In Asian Equity Markets indices fell on Thursday morning as the main yield curve in U.S. Treasurys inverted, triggering fears over the state of the U.S. economy. In Japan, the Nikkei 225 fell 1.88% in morning trade, while the Topix index declined 1.73%. Australia’s S&P/ASX 200 also fell 1.91%. Markets in South Korea and India are closed on Thursday for holidays. Bank stocks across the region also fell on Thursday. In Japan, shares of Mitsubishi UFJ Financial Group fell 1.88% and Nomura fell 2.18%.

In Currency Markets the yen held on to gains against major currencies in early Asian trading on Thursday as growing signs of a global economic slump drove investors into safe-haven assets. The Swiss franc and gold also edged higher as investors fled from stocks and sought safe-haven assets after the U.S. Treasury yield curve inverted for the first time in 12 years and U.S. stocks sold off sharply. The dollar was a tad lower at 105.85 yen in Asian trading Thursday. On Wednesday, the yen rallied 0.8% versus the greenback, its biggest daily gain in two weeks.

In Commodities Markets oil prices fell on Thursday to extend sharp overnight losses as U.S. crude inventories unexpectedly rose, fears of recession mounted and economic data out of China and Europe disappointed. Brent crude was down 39 cents, or 0.7%, at $59.09 a barrel, after falling 3% in the last session. U.S. crude was down 28 cents, or 0.5%, at $54.95 a barrel, having dropped 3.3% in the previous session. The OPEC has been mostly trimming production since the start of 2017 and traders say they expect Saudi Arabia to reduce output further amid slowing global oil demand.

In US Equity Markets indices fell sharply on Wednesday as recession fears gripped the market after the U.S. Treasury yield curve temporarily inverted for the first time in 12 years. The S&P 500 lost 2.93%, to 2,840.6, and the Nasdaq Composite added 3.02%, to 7,773.94. Macy’s Inc’s shares fell 13.2% after the department store operator missed quarterly profit estimates and cut its full-year earnings estimates. Rival department store operators Nordstrom Inc and Kohls Corp slid 10.6% and 11.0%, respectively.

In Bond Markets the U.S. Treasury 30-year bond yield fell below 2% for the first time on Thursday as fears of a global recession gripped financial markets and drove investors towards the safety of government debt. The 30-year yield extended its sharp overnight slide and hit a record low 1.991% in Asian trade. The fall below the 2% threshold has taken the entire Treasury yield curve below official interest rates. The two-year/10-year Treasury yield curve inverted for the first time in 12 years on Wednesday.