European Markets Slide After Wall Street Sell-Off

Asian stocks dropped on Wednesday after Mr. Trump posted a series of messages on Twitter warning that a fragile cease-fire in the trade war between the United States and China could be derailed. In Taiwan, Hong Kong and Taipei, investors sent the market 1.6% lower. Japan’s Nikkei225 index in Tokyo ended the day 0.5% lower.

The Australian economy grew by 0.3% quarter-on-quarter in the 3rd quarter, coming up well short of a forecasted 0.6% and 2nd quarter 0.9%. Year-on-year, the economy grew by 2.8%, coming up short of a forecasted 3.3% and 2nd quarter 3.4%.

ABS Australian Bureau of StatisticsAccording to the ABS:

Household consumption propped up growth in the 3rd, with consumption rising by 0.3% driven by non-discretionary spending on food and housing.

Discretionary spending slowed in the quarter, household gross disposable income continuing to rise at a slow pace, with rising household income being offset by a rise in income tax payable.

The household saving ratio fell to 2.4%, its lowest since Dec-07.

Business inventories contributed to the softer number, with just an A$47m increase in inventories compared with a A$1.2bn increase in the 2nd quarter, leading to a 0.3 percentage point deduction from GDP.

AUDUSD moved from $0.73450 to $0.7280 today’s low after release of the worst that expected figures.

The European markets trading session started in the red with London’s FTSE 100 index down 1.3% to 6,932 and German’s DAX lost 1.1% to 11.207.49. France’s CAC 40 retreated 1.2% to 4,951.74.

EURUSD yesterday rejected at the 1.14 level and ended the day down to 1.1342, in early European trading session it trades slightly lower at 1.1338 just below the 200 hour M.A.. Economic data scheduled for release in Eurozone  with key stats including November’s service sector PMI numbers for Spain and Italy and finalized numbers for France, Germany and the Eurozone and October retail sales figures out of the Eurozone.

In US the markets will miss out on FED Chair Powell’s testimony, which has been cancelled as a result of George H.W. Bush’s passing, with President Trump having called for Wednesday to be a day of national mourning.