Investing.com – Here are the five most important pieces of information you need to know on the financial markets on Wednesday, August 14:
1. Signs of economic downturn weigh on sentiment
Worries over data from China and Germany fueled fears of a potential global recession.
China's growth in July is another sign that the trade conflict between Beijing and Washington is the second largest in the world affecting the economy.
Trading pressures also weighed on China's consumer and business confidence as retail sales cooled more-than-expected, while slower-than-forecast growth saw significant momentum.
Germany offered no relief for the grim prospects as such collapse in exports spurred its second-quarter. The 0.1
. 2 The trade facilitation transition to economic concerns
was mixed in Wednesday's trading session after Washington had announced a day earlier to delay the imposition of some tariffs on Chinese imports from 1 September to 15 December.
The subsequent relief rally on Tuesday led to strong price gains on Wall Street, which quickly spread to Asian markets. Hong Kong was the exception, depressed by the fear that Beijing would crush the local protesters by force.
But the buying enthusiasm eased overnight and the US futures pointed to a lower opening as the markets processed the fact that the US introduced tariff delays the two sides have not come closer to resolution.
. 3 2- and 10-year US notes put to test with dwindling yields
After a brief pause the day before, a global rally in bonds was in full swing again, resulting in a sharp decline in yields.
Markets are watching returns on US 2- and 10-year Treasury bills as the spread is just one basis point. If the yield is below that of, it could lead to an inverted yield curve, warn the economists.
The flight to security and easing of central bank policy worldwide has cornered bond yields. The German Confederation, the benchmark index for safe havens in the Eurozone, hit a new record low of -0.64% after GDP failed to show any urgency for the government to provide a fiscal stimulus package to the economy.
] 4. Cisco Rising to Profit
Cisco (NASDAQ) will be in the limelight of earnings after the second quarter earnings season finishes, with less than 50 S & P companies still on the calendar.
The company will report against the backdrop of fears that weaker corporate spending on network devices could affect growth.
Last week, a slowdown in network spending was brought to the spotlight when NetApp (NASDAQ 🙂 warned that quarterly revenues would miss estimates due to uncertainty about the global outlook.
. 5 Unexpected Inventory Oil Losses
Were Backed by Further Signs of Global Economic Slowdown and a Surprising Rise in US Crude Oil Stocks The US Energy Information Administration expects a 2.78 million barrel gain at 10.30 am ET (14.30 GMT) released.
Read more : – Barani Krishnan  – Reuters contributed to this report.
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