Global markets teeter as slowdown takes hold
If misery loves company, India has the whole world to choose from: the largest economy on the planet, the US, is slowing. China, the No 2 economy, is slowing. All the European nations are slowing.
Such was the raft of bad data on Friday, they took down stocks and lifted the prices of safe-haven bonds and gold.
A survey by Markit Economics, which surveys purchasing managers in over 30 countries and regions, suggested China's factory gauge dropped from 49.3 in April to 48.4 in May. A reading below 50 suggests contraction in the economy, which, if sustained, leads to recession.
In the US, it fell to 54 from 56 in April. To boot, the US Labour Department said companies added the smallest number of workers in a year in Ma
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The euro-area manufacturing index fell to 45.1, the lowest since mid-2009, from 45.9 in April. The profusion of bad data meant Brent crude oil fell below $100 for the first time in eight months, dropping to $98 per barrel. Stock indices across the world fell, with Germany's taking a massive hit of nearly 4% in early trade.
German two-year note yields fell below zero for the first time and 10-year yields on Austrian, Dutch, Finnish and French bonds dropped to records.
"There is a real sense of impending panic spreading now and that's exacerbating all of these moves," said John Wraith, a fixed-income strategist at Bank of America Merrill Lynch in London.
All fall down
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