Fears of recession hit global markets – businesses live | Business

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The worries about the health of the global economy are now worrying the markets, dropping shares in Asia.

Fears of a global recession strengthen, after a flurry of weak economic data in recent weeks. As the eurozone economy falters, US growth slows, and China feels the impact of the trade war, investors are more worried about the outlook for 2019 and beyond.

David Madden of CMC Markets explains:

Overnight, Asian equities fell sharply as worries about the health of the global economy weighed on confidence. Heavy losses have been recorded in Japan and China.

From Japan Nikkei fell by 3%, while a wave of sales made it lose 650 points to 20,977 points.

Hong Kong Hang Seng the index lost 2.1% at the end of the session, and China CSI 300 paid 2.3%.

This follows a strong sell Friday in Europe and Asia, which was 2% on the British FTSE 100 and 1.7% on the Dow Jones industrial average.

This was caused by the steepest drop in industrial production in the euro area since the euro debt crisis, with Germany having fallen sharply.

Madden says:

All Brexit talks focused on the state of the British economy, but continental Europe is limping up and the bloc seems very weak. Brussels is holding up, but the eurozone is in trouble and France and Germany would be hit hard by a Brexit without agreement.

Traders are nervously examining the bond market, where the US yield curve has just reversed. This is because the three-month US government bonds are now changing in the same way, at the same interest rate, as the 10-year debt.

This suggests that investors are worried about the US economic outlook, especially since an inverted yield curve often (but not always) announces a recession.

Khoon Goh
(@Khoon_Goh)

#WE The yield curve of 3m10a is reversed for the first time since May 2007. There had been false signals previously. But if the yield curve remains negative and more and more, historically, this has been a pretty good predictor of a US recession over the next year. pic.twitter.com/F3z9OmJROn

March 25, 2019

European stock markets are expected to fall again today. A new survey of German business confidence, expected at 9:00 GMT, could give investors more trouble.

IGSquawk
(@IGSquawk)

European calls for opening:#FTSE 7176 -0.43%#DAX 11285 -0.69%#CAC 5244 -0.49%#MIB 20936 -0.68%#IBEX 9133 -0.72%

March 25, 2019

Brexit anxiety will also weigh on the city today as Prime Minister Theresa May's future looks more perilous after a crisis meeting with senior party officials yesterday.

L & # 39; s calendar

• 9:00 GMT: German IFO survey on business confidence