On Tuesday, the hope, the Wednesday panic: The roller-coaster ride on Wall Street went on the yesterday’s trading day in a new round. After the day before the positive signs in the US trade war with China created a calming, dominated on Wednesday, the economic fear.
On the New York Wall Street posted on Wednesday all the three indices, losses of about three percent. The Dow Jones Index lost over 800 points and closed ultimately in 25.479 points. The broader S&P 500 closed at 2840 meters and the Index of technology exchange Nasdaq at just under 7774 points.
Switzerland: All 30 SLI title in the Minus
the Swiss stock market rustled in the basement. The Swiss Market Index (SMI) dipped 1.61 percent to 9’628,48 counter. The 30-share comprehensive Swiss Leader Index (SLI) fell by 2.01 percent to 1’455,19 counter, the broad Swiss Performance Index (SPI) fell to 1.52 percent to 11 713,85 points. All 30 SLI-title closed in the Minus.
The nervousness extends now across all asset classes, said market participants. Among the triggers for the selloff, weak economic data from China and Germany.
China’s industry is growing so slowly since 2002, not more
In Germany, economic output contracted in the spring slightly by 0.1 percent. You should also go back in the current quarter, would be considered the key market for Swiss companies technically in a recession. Also, China’s production data from the industry and sales figures from the retail trade were weak. The industry in the middle Kingdom grew even as slow as for the past 17 years.
the recession fear has been Nurtured further by the development of the US bond market. The yield on two-year Bonds rose for the first time since 2007, and thus the times of the financial crisis, at times, over the ten-year-old. Typically, current bonds yield longer higher than shorter-running. This so-called inverse yield curve have said in seven of the nine cases, an economic downturn correctly before, said Neil Wilson, chief Analyst for the Online Brokers Markets.com. However, it takes usually one to two years before the economy slides into a recession.
“The customs dispute between the USA and China has already an impact on the economy,” said Christophe Barraud, chief investment strategist of the brokerage house Market Securities. The Chinese industrial production grew slowly in the last 17 years.
Analyst Bernd Krampen by NordLB attributed the slump to a mixture of bad news, including the Concerns of the customs dispute and the Brexit, as well as, more recently, the unrest in Hong Kong.
UBS, Julius Baer and Credit Suisse in the low-altitude flight
The development of the bond markets to put in front of all banks, because it makes it difficult for you to earn credits and investments in bonds and notes, money. And thus, the shares of UBS (-3.7 percent), Julius Baer (-3,6) and Credit Suisse (-3,5) slipped in Switzerland down. Under pressure to sell the technology stocks came. The shares of Chip-maker Intel, and AMD lost in the United States up to 5.8 percent. The papers of iPhone-maker Apple, lost almost three percent.
The recovery from the previous day is on the leading US stock history. In the face of price increases ahead of the Christmas business, the US government had threatened on Tuesday to the introduction of already announced punitive tariffs, was postponed, but many traders remained here after the experience of the past few months, skeptical. In the gleaning of the opinion it was not now more broad that a solution to the trade conflict moves with such measures in more detail. (SDA/nim)