>> A hard truth is starting to set in for global investors. Stock prices falling around the globe Thursday. Bond yields at unheard of negative interest rates in some places. The foreign exchange market making big swings, and gold shining bright. Prices jumping to a two-year high, as investors look for a safe place to hide their money.
Investors are sending a clear message to the world's central banks, says Reuters Financial Markets Editor, Dan Burns.>> Those are signals that tell you that the global investing community does not have confidence in central banks any longer to reflate the world economy.>> Since the dark days of the financial crisis, central banks have thrown trillions of dollars at the global economy.
But despite those efforts, the economic growth this year expected to remain around the paltry 2% level. The Bank of Japan throwing up its hands Thursday, offering no new stimulative efforts. The Federal Reserve scaling back the number of planned rate hikes, fearing the US economy is not in the condition to sustain higher rates.
And the European Central Bank is sitting on its hands all waiting for Britain to decide whether to break from the European Union, known as Brexit. The momentum appears to be behind the leave camp. And that's very unsettling for financial markets when you consider about how that repositions Britain, with the rest of not just Europe but, the rest of the world.
There are number of US companies with big operations in the UK that would clearly be affected. It would, it's clearly one of those moments that would create a big, what we would call, risk off moment.>> Underscoring just how intense the level of fear is out there, when Brexit campaigning was called off to mourn the death of a politician gunned down Thursday, stocks on Wall Street turned higher.