Investors turn to safe haven assets like sovereign bonds & gold amid global concerns

ET INTELLIGENCE GROUP: Amid concerns over slowing China and soft oil prices, investors across markets are buying safe haven assets like sovereign bonds and gold. Since January global equity markets have shed $7 trillion in value — equivalent to the total market capitalisation of China. With this, more than half of the most liquid equity markets have officially entered into a bear phase.

After the rout in emerging markets, the declining health of companies and banks in developed markets are now making investors nervous. The alarming quarterly results of Credit Suisse and Deutsche Bank have sparked concerns about the health of the industry. Post results, the stock of Credit Suisse reached its lowest level since 1991; large European banks have lost nearly one-fifth of their market value.

Traders are awaiting the statement of US Fed Chair Janet Yellen who is scheduled to appear before the House Financial Services Committee on Wednesday and address the Senate Banking Committee the next day.