Asian shares declined on Wednesday following a global rout overnight with attention on Shanghai as markets resumed trade after a week-long holiday. Disappointing data from Germany, the euro zone’s largest economy, hit sentiment overnight. The country reported a shocking 4 percent monthly drop in industrial production for August, the worst reading in over five years.
Furthermore, the International Monetary Fund downgraded its assessment of the global economy. It now expects growth of 3.8 percent next year, down from its July forecast of 4 percent. The fund also said there’s a 1-in-3 chance of the euro zone falling back into recession.
Those growth concerns saw Wall Street’s three major indices drop more than 1.5 percent each with the S&P 500 hitting an eight-week low. European shares tumbled more than 1 percent each with Germany’s Dax index closing at its lowest in nearly two months.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.