Wall Street tumbles as recession fears intensify
Wall Street stocks nose-dived yesterday after the US yield curve inverted for the first time since 2007, which is often seen as a precursor to a recession. Weak data out of China added to the malaise. The key Australian jobs report is due today
US30USD Daily Chart
The US30 index gave back all of the previous day’s gains, and more, yesterday amid gloomy global data and crashing US yields
The index closed below the 200-day moving average at 25,582 for the first time in 10 days. The 78.6% Fibonacci retracement of the June-July rally is at 25,120
US retail sales probably rose 0.3% m/m in July, the latest survey of economists shows. Industrial production likely increased 0.2% m/m in the same month.
DE30EUR Daily Chart
The Germany30 index fell the most this year after GDP data confirmed the Germany economy contracted in the second quarter
The index closed below the 50% retracement level of the December-July rally at 11,470 for the first time since March 28
German GDP fell 0.1% q/q in Q2, the first negative reading in three quarters, data released yesterday showed. There are no major German or Euro-zone data releases scheduled for today.
AU200AUD Daily Chart
The Australia200 index fell the most in seven sessions yesterday in response to weak data out of China. The index has risen slightly this morning ahead of the July jobs report
The index closed below the 100-day moving average at 6,472 for the first time since January 23
The Australian economy probably added 14,000 jobs in July, the latest forecasts from economists suggests. that’s a sharp increase from June’s 500 jobs. The unemployment rate is seen holding steady at 5.2%.
