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Global shares slide as U.S., German data deepen the gloom

Credit: Reuters Studio
Published on October 2, 2019 - Duration: 01:27s

Global shares slide as U.S., German data deepen the gloom

European shares followed U.S. and Asian markets lower as fresh numbers on both sides of the Atlantic added to worries over a worldwide slowdown.

Julian Satterthwaite reports.

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Global shares slide as U.S., German data deepen the gloom

Bad news from U.S factories rocked global markets on Wednesday (October 2).

Numbers out the day before saw U.S. manufacturing activity drop to its lowest level in more than ten years.

The ensuing selloff on Wall Street then rolled through other regions.

Korea's Kospi index among the worst hit in Asia, down almost two percent at the close.

Benchmark indexes indexes in Europe all fell one percent or more from the open.

Fresh German gloom didn't help.

The country's leading economic institutes on Wednesday slashed their growth forecasts for Europe's biggest economy.

Other data showed European firms on track for their worst quarterly earnings in three years.

Data Trek co-founder Nicholas Colas says the global jitters are easily explained: DATA TREK CO-FOUNDER NICHOLAS COLAS, SAYING (ENGLISH): "The trade war and the tariffs have put this chill on global manufacturing and it's not going to get resolved until the trade war gets resolved.

And until that happens we are going to see very sloppy numbers out of manufacturing, and even, very possibly, a manufacturing recession." Shares in London were also exposed to new Brexit tensions Wednesday.

Prime Minister Boris Johnson revealing his final proposals for a deal with the EU.

He says there will be no further talks if the bloc won't engage with the ideas.

The FTSE lagged continental peers with a 1.5% early decline.

Sterling followed stocks lower amid mounting doubts that a deal will be done.

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