Trade-war worries have been hammering the financial markets since last Wednesday after data coming from China and Germany indicated trouble for the economies that heavily rely on manufacturing-this happening just after the renewal of American recession fears by the bond market.
Stock commodities have been tumbling in the U.S. and Europe even as risk-averse economists fled to the safety of bonds from the government, pushing the prices of bonds even higher- a move that is entirely in the opposite direction and possibly leading to lowest levels ever seen.
Looking at Wall Street, the reduced by 2.9 %, after a leading drop in the energy sector. Retail shares also experienced a notably sharp fall, after Macy’s Inc (NYSE:) posted much less quarterly results. Shares from big technological firms, especially those that have a more sensitive outlook for trade wars, also fell. There was also a drop in Europe’s Stock benchmarks.
According to Investo Trend, investors have been responding through the dumping of stocks, even more than had erased gains from a campaign, a day before. Dow Jones Industrial Average had experienced a drop of more than 700 points by the afternoon trade. Technology stock and banks also fell, resulting in retailers coming under extra heavy pressure to sell immediately after Macy’s produced dismal earnings report that cut its forecast for a full year.
Traders have a habit of plowing money in the ultra-safe government bonds when they are afraid of a possible economic recession, resulting in lower yields. After the long-term yields have fallen enough, some market watchers will take this as a prediction showing an upcoming recession within one year or two. The current return within the Treasury has decreased from 2.02% on the 31st of July this year to less than 1.60%. On Wednesday, the Treasury yield hit the