Weak indicators and poor global outlook raise recession fears in the US

By FXStreet FXStreet (Mumbai) – The slump in oil prices and the fear of slowdown in China on the back of weak fundamentals have hit the US markets as well. US Markets have witnessed a lot of turmoil since the beginning of 2016. The Dow Jones Industrial Average dropped 8.3 per cent in the first two weeks, hitting the lowest level since September. Oil, on the other hand has dropped below $30 per barrel, the worst in 12 years.

China’s markets have been very volatile ever since last summer when it experienced a stock market crashed. In 2016’s first week of trading, China was forced to suspend trading twice to stop avoid a market crash. It also devalued its currency twice in the first week causing markets everywhere to stumble. China’s Q4 GDP will be released tomorrow and markets are bracing themselves for another strong and undeniable sign of slowdown. El-Erian, a Bloomberg View columnist said “Investors that are used to have favorable fiscal policies will have to get used to” slower economic growth.

Economic indicators highlight declining growth across sector

Back home, the scenario has been far from impressive. Hurt by the strong dollar and continuous drop in oil price, the manufacturing sector …read more

Source:: FX Street