Dow suffers worst day of 2019 as recession fears hit US, European stocks

Stock markets on both sides of the Atlantic saw hefty losses Wednesday, gripped by fears for the global economy following poor Chinese and German data and as key US bond benchmark signaled more trouble ahead.

The Dow suffered its worst day of 2019, finishing with a loss of some 800 points, or 3.1 percent, at 24,479.42, while leading European bourses shed more than two percent.

The losses marked a sharp reversal from Tuesday's heady session, when President Donald Trump's decision to push back US tariffs on many key Chinese goods boosted equities.

But the glow from that positive move faded as Chinese industrial output hit a 17-year low and German data showed the economy contracted in the second quarter.

The yield on the 10-year US Treasury note briefly slid below the yield on the two-year bond, a so-called "inversion" that has been a reliable harbinger of recession for decades.

"On the economics dashboard of doom, we have another flashing warning light," analysts at ING economics said. "The market is worried about a recession."
He questioned whether global central banks are "shooting blanks."