March 29 Reuters The failures of U.S. lenders Silicon Valley Bank SVB and Signature Bank, followed by Credit Suisse39;s rescue, and the ensuing turmoil in world markets have reignited the recession risks that appeared to have abated just a few weeks ago.

Traders now bet the Federal Reserve is practically done hiking interest rates. Optimism that followed China39;s economic reopening and tumbling energy prices early this year has dimmed.

The bigger, mediumterm implication, of what39;s happened in the last month is that global growth will be far weaker in six months than we thought even just a few weeks ago, said Mike Riddell, senior fixed income portfolio manager at Allianz Global Investors.

Here39;s what some closely watched market indicators say about recession risks

1 CRUNCH TIME?

Central bankers are closely monitoring the potential for banking stress, on top of lending conditions that were already tightening, to trigger a credit crunch.

Fed chief Jerome Powell believes financial conditions have likely tightened more than traditional measures indicate. European Central Bank boss Christine Lagarde has also said the market turmoil may help fight inflation.

Goldman Sachs reckons the tightening in bank lending standards it expects could subtract at least 0.25 to 0.5 percentage points from 2023 U.S. economic growth, equivalent to the impact of another 2550 bps of Fed rate hikes.

AXA Investment Managers Chief Economist Gilles Moec noted small and big U.S. banks were…