Stocks Slide on Slowdown Fears
Asian stocks extended decline to monthly low after a fall in the US equities. Disappointing US data, US imposing fresh tariffs on $7.5 billion worth of European Union’s (EU) goods, and the US-China headlines increased concerns about a global slowdown. Those fears increased bets that the Federal Reserve will cut rates this month.
With this, the US dollar remains under pressure as weak data reflects a recession in the world’s largest economy. The Euro failed to bounce despite the drop in the US yields since the upside is limited due to Trump’s fresh tariff imposition on the EU. The Pound has been cautiously trading amid mixed Brexit news. The EU stands ready to extend the Brexit without the United Kingdom’s (UK) Prime Minister (PM) Boris Johnson’s request.
Investors will now focus on a slew of Purchasing Managers’ Index (PMI) numbers form the EU, the UK and the US ahead of Friday’s key employment reports from the US. Further to note, traders will also seek clues of a slowdown in today’s Fed speakers.
NOTE: Traders are advised to be cautious and be updated on the major economic news causing high volatility to achieve better trading results.
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