Asian stocks fell this morning, dragged by Wall Street’s tumble as sharp declines in long-term U.S. Treasury yields and growing trade concerns stoked investor worries about global economic growth.
Global equities have been shaken as a flattening U.S. Treasury yield curve – a result of a steep fall in longer-dated yields – fanned recession jitters and as U.S.-China trade conflict woes resurfaced after a temporary lull.
Australia’s economy slowed by more than expected last quarter as consumers kept their purse strings tight, while a pull-back in non-residential construction also proved a deadweight sending the local dollar sharply down.
Today’s report on Australia’s GDP showed the economy expanded 0.3 percent in the third quarter, half of what economists had expected.
In other news, British Prime Minister Theresa May suffered embarrassing defeats yesterday at the start of five days of debate over her plans to leave the European Union that could determine the future of Brexit and the fate of her government.