The Dow Jones had another bad night, down almost 1.86%, and at the time of writing own share market is doing a little worse, down 2.25%.
This particular sell-off has been triggered by global factory numbers. Yesterday we saw the ISM manufacturing gauge in the US fall to a ten year low, while Eurozone manufacturing contracted at its steepest rate for seven years. In other words, these may be the early signs of an economic slowdown.
On the positive side, a US-China trade deal may just be in the offing (as early as October 10th), as President Trump seeks to distract voters from the ‘impeachment enquiry’, and avoid an economic recession taking place in an election year. It’s a tall order, but make no mistake, both the US and China are now fully motivated.
Fingers crossed, bring a sweater, we’re in for stormy weather!
Rick Maggi