US sharemarkets plunged on Wednesday,local time,amid heightened fears of a recession.Credit:AP
Germany’s economy shrank 0.1 per cent from April to June,the government’s official statistics agency said. Analysts predict it will contract again this quarter,which would put it in a technical recession.
Chinese factory output fell to its slowest pace in 17 years in July,according to government data.
Former US Treasury Secretary Lawrence Summers said the US was in"the most dangerous moment,in terms of recession,since the 2008 financial crisis".
He told CNN it was a particularly troubling moment because the government lacked the usual tools to stave off economic decline.
The Trump administration has already slashed tax rates,interest rates are at rock bottom and there is little scope for fiscal stimulus.
Former Federal Reserve chairwoman Janet Yellen,who was appointed by former US president Barack Obama,said that an inverted yield curve had historically"been a pretty good signal of recession"but it might be different this time.
US President Donald Trump blames the US Federal Reserve for the US sharemarket woes.Credit:AP
"The reason for that is there are a number of factors other than market expectations about the future path of interest rates that are pushing down long-term yields,"she told the Fox Business Network.