US markets continue to sell out as another economic data feeds on recession fears. Bonds along with gold and yen are rising as safe heaven assets.
Poor ADP data from today and yesterday’s frighteningly weak ISM PMI data sent the indexes to their lowest levels since August, with the S & P500 down 2.5% today. The sample index and key level at 2900.
The automotive sector today is one of the worst performing after poor sales reports from Ford and General Motors. All 11 sectors of the S & P500 remain in the red, with the most sensitive sectors reflecting the worst downturns. The technology and industrial sectors are down 2% each. DJIA is down 400 points, with only 2 of the 30 companies in the index on the green.
10-year bonds remain down, holding just over 1.6%. Gold rose again to near $ 1500. European indices also recorded one of their weakest sessions.
The British pound remains under pressure after Boris Johnson formulated his latest Brexit plan and warned the European Union that Britain could go out of business. Oil remained down, approaching $ 53 a barrel.
The Stoxx Europe 600 recorded a decline of 1.8%, the FTSE sank by nearly 2.5%, the MSCI Asia Pacific Index by 0.6%.
The euro remained up by around 0.1% and the Japanese yen by 0.3%.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov