World stocks are plunging after USA manufacturing hits a decade low

WATERBURY CT- OCTOBER 21 The remaining interior of a shuttered factory connected to the brass industry stands in what was once a vibrant manufacturing city

A production line employee works at the AMES Companies shovel manufacturing factory in Camp Hill, Pennsylvania, US.

Tim Fiore, president of the Institute for Supply Management, told FOX Business on Tuesday that an ongoing strike at General Motors did not artificially suppress data on the manufacturing sector last month, which some had posited as a plausible explanation for the bad reading. This could be an indication that the tariff war is affecting US manufacturing negatively.

Worries the drop in manufacturing was a harbinger of a sharper slowdown in the economy continued on Wednesday, as each of the major indexes closed down more than 1.5%.

U.S. President Donald Trump once again lashed out at the Federal Reserve on Tuesday, saying the central bank has kept interest rates "too high" and that a strong dollar is hurting U.S. factories. They are their own worst enemies, they don't have a clue. Any reading above 50 indicates growth. The index has now declined for six consecutive months and is in stark contrast with a rebound in the so-called hard data like industrial production, which showed output at factories rising in August.

On this side of the pond, the focus will turn to the US ISM Non-Manufacturing report which is due at 14:00 GMT.

Addressing inventories, Fiore said the sector is still matching import orders to input material levels, which makes a lot of sense, as manufacturers are closely watching new order levels softened four months ago, with the inventory number being at the 49 level, give or take, with the inventory number now at 46.9. He believes the risk of recession is real and serious.

In news of local concern yesterday, as would be well known, the RBA cut interest rates to a new record low of 0.75%.

"The main reasons appear to be slower growth overseas and trade policy developments - two sources of uncertainty that we have been monitoring all year", Fed Chairman Jerome Powell told reporters at a press conference last month.

North Korea fires ballistic missile ahead of nuclear talks
However, the two leaders, during a brief meeting in the DMZ in June, agreed to resume working-level talks. The State Department confirmed talks would be held but the location and other details were not released.

All 11 primary S&P 500 sectors dropped, with energy, financials, and technology sectors decreasing 2.61 percent, 2.10 percent, and 1.98 percent, respectively, the top three laggards.

Analysts noted that investors have valid reasons to be concerned about the US economy.

"Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019". That move prompted a tumble in Australian Government Bond yields, and the AUD, with local currency trading at a fresh 10 year low briefly overnight.

Investors will, of course, now have one eye on tomorrow's all-important nonfarm payrolls report, which will give us a better indication as to how the USA labour market is performing going into the final quarter of the year.

The trade war is also hurting economies around the world, as both trade and manufacturing are slowing at a pace close to the Great Recession.

Economists had expected the index to recover to above 50 percent.

The dollar fell against a basket of currencies on the ISM survey, while US Treasury prices rallied.

The new export orders index slid to 41.0 in September from 43.3 in August, falling to its lowest level since hitting 39.4 in March of 2009. The group's production gauge slipped to a 10-year low while the employment measure also dropped to the lowest since January 2016.

Related News:

  • Intel launches Core X-Series processors for creators and enthusiasts

    Intel launches Core X-Series processors for creators and enthusiasts

    The Intel Core i9-10900XE will feature 10 cores and 20 threads, whereas the Core i9-10920XE will have 12 cores and 24 threads. Next up is the Core i9-10940X with 14 cores, 28 threads, 3.3 GHz base speed, 4.6 GHz boost, 165 W TDP, and priced at $785.
    Reynolds: 'I don't think there's anything' to Trump inquiry

    Reynolds: 'I don't think there's anything' to Trump inquiry

    Schiff knew to press for the complaint when the Trump administration initially blocked lawmakers from seeing it". This whole fiasco is even more pathetic than the Russian collusion nonsense that was peddled for over two years.
    Iran's Rouhani says French plan for talks broadly is acceptable

    Iran's Rouhani says French plan for talks broadly is acceptable

    Germany, Britain and France were among signatories to Iran's 2015 nuclear pact with world powers, which Trump pulled the United States out of past year .
  • Dow falls more than 800 points in two days

    Dow falls more than 800 points in two days

    Market participants will also focus on a pivotal jobs report on Friday after dismal manufacturing and hiring data showed the U.S. Germany's DAX lost 2.8%, while the CAC 40 in Paris dropped 3.1% and the FTSE 100 in London lost 3.2%.
    Scherzer will start NL wild-card game for Nationals

    Scherzer will start NL wild-card game for Nationals

    That brought up Juan Soto , the Nationals' 20-year-old cleanup hitter, who smacked a 96 miles per hour fastball into right. Milwaukee then couldn't add any runs in the ninth. "The inning was an ugly inning", Brewers manager Craig Counsell said.
    Putin says no proof Iran was behind Saudi attacks

    Putin says no proof Iran was behind Saudi attacks

    Iraq has sought to mediate between the opposing sides of the region's many feuds, especially between Iran and Saudi Arabia. However, the Kingdom has recovered its oil production faster than it was expected .
  • Green Day pay tribute after death of The Muffs' Kim Shattuck

    Green Day pay tribute after death of The Muffs' Kim Shattuck

    While battling ALS Kim produced our last album, overseeing every part of the record from tracking to artwork. Kim Shattuck , lead singer, guitarist, and songwriter of the big '90s pop-punk band the Muffs , has died.
    Miley Cyrus reveals 'unconditional love' in candid post

    Miley Cyrus reveals 'unconditional love' in candid post

    The two had been together for 10 years after meeting on the set of Nicholas Sparks flick The Last Song. Pop Singer Miley Cyrus is going through a rough patch and her troubles seem to be never-ending.
    Curfews and internet blockages as death toll from protests mounts in Iraq

    Curfews and internet blockages as death toll from protests mounts in Iraq

    Unusually for Iraq, no political faction had explicitly called for Tuesday's protest, which appeared to be largely spontaneous. Similar protests and confrontations took place in other provinces, including in the cities of Basra and Nasiriyah in the south.
  • Joaquin Phoenix 'embarrassed' by his diva behaviour

    Joaquin Phoenix 'embarrassed' by his diva behaviour

    Of switching from making comedies to dramas, Phillips says, "Go try to be amusing nowadays with this woke culture". OMG, you'll never believe this, but... it turns out yet another actor playing The Joker was really hard on set.
    New Zealand Have History In Their Sights Against Canada

    New Zealand Have History In Their Sights Against Canada

    Two-time World Cup victor Williams has been plagued by injury in recent years but Hansen sees him returning to his best. The All Blacks opened with a 23-13 win over two-time champion South Africa and are hot favorites to top Pool B.
    Vintage B17 crashes at Bradley Airport; State police confirm injuries

    Vintage B17 crashes at Bradley Airport; State police confirm injuries

    The plane was five minutes into the flight when pilots reported a problem and said it was not gaining altitude, officials said. Photos and footage posted on social media show flames raging near the ground and black smoke rising above the airport.


Most liked

Minuteman III: United States answers North Korea launch with intercontinental ballistic missile
North Korea still has one seaworthy ballistic missile submarine, the Gorae , which remains berthed at the Sinpo Shipyard. Hours before the launch, Pyongyang said denuclearisation talks with the U.S. could resume this week.

Turkey says work on Syria "safe zone" not yielding results
Turkey says it wants to settle up to 2 million Syrian refugees in the zone, and has repeatedly warned of unilateral military action if it is not satisfied with progress.

PlayStation 4 Cross-Play Function Leaves Beta as Option for All Games
The first wave will include God of War , Grand Theft Auto V , inFAMOUS Second Son , and Uncharted 4: A Thief's End . The service's price has also been lowered by half to $9.99 monthly, where it was previously $19.99 per month.

Nigeria Set to Lose Tammy Abraham to England This Week
Chelsea striker Tammy Abraham says he has not decided on his global future as Gareth Southgate prepares to name his latest England squad.

Diggs frustrated with Vikings, misses practice
The wide receiver, a fifth-round pick in 2015, has 315 catches for 3,702 yards and 25 scores in 59 career games. The Minnesota Vikings receiver missed practice Wednesday for non-injury reasons.

UK probes auditors of Thomas Cook as foreign branches fall
Meanwhile, more information will be available on its website from October 7, said it. This would enable customers to get refunds within 60 days of receiving refund forms.

Nintendo Switch Update 9.01 Released, and Here's What It Does
That said, it's unclear if this " Switch Lite v2" addresses the controller problem that's now plaguing users. Players can also do simple arithmetic by holding up the correct number of fingers in view of the IR sensor.

Champions League: Cristiano Ronaldo clinches more history
Serial Champions League victor Ronaldo scored in Juventus 3-0 victory over Bayer Leverkusen to take control ofthe Champions League Group D.

Djokovic cruises into second round in Tokyo
With Djokovic serving for the win, Soeda broke his opponent for the first time when Djokovic double-faulted to make it 5-4. In the second set I ended up the match in a good fashion and I'm very pleased overall with the game".

Stop creating a generation of depressed, French minister urges Greta Thunberg
Pointing to his past experience as a KGB spy, Putin said "any conversation can be published - I always proceed from that". The White House last week released a transcript of a call this summer between Trump and a recently elected Zelensky.

B-17 Crashes at Bradley Airport in CT
The plane had another minor incident during a tour stop in Nebraska in 1995 when part of its landing gear would not lock in place. The left wing and tail appear to be all that remains of the airplane. " We have an active fire and rescue operation underway ".

Australian Drivers Intentionally Run Over 20 Kangaroos in ‘Senseless Slaughter’
Sunday, police mentioned in an announcement. "This is so far the sole survivor", Ms Green she told the Illawarra Mercury. Independent UK pointed that kangaroos who were severely injured but were killed during the inhumane act were euthanized.

Leafs roster nearly set as season opener nears
The Leafs coach leans on his fourth-line players as penalty killers, and doesn't feel Spezza is ready to excel there. As much as we'd like to be sure with what we're doing on our decisions, we weren't 100% on some of those.

Hua, Sian - Huawei Mate 30 Loses Access To Google Apps Again
It also doesn't come with the Google Play Store, the main way users outside China can access Android apps. According to the report, Mate 30 devices had passed Google's SafetyNet anti-abuse check last week.

Kylie Jenner and Travis Sott are 'taking a break' after two years
It's also been noted that the former couple have agreed to 50/ 50 custody over their daughter Stormi . It was noted that Kylie was without Travis at Hayley Baldwin and Justin Bieber's wedding this week .