Investing.com – Here are the top five things you need to know in the financial markets on Wednesday, August 14:
1. Signs of economic downturn weighing sentiment
Alarming data from China and Germany add concerns about a potential global recession.
China's growth in July is another sign that the Beijing-Washington trade conflict is the world's second-largest economy.
Trade tensions also boosted consumer and business confidence in China, with retail sales cooling more than expected, while slower-than-forecast growth showed noticeable loss of momentum.
Germany did not provide relief for the gloomy outlook, with a fall in exports in the second quarter. The 0.1
2. Stocks shifting from trade relief to economic anxiety
were mixed in trade Wednesday after Washington announced earlier that it would delay the application of some tariffs on Chinese imports from September 1 to December 15.
the ensuing rally for relief led to a sharp increase in Wall Street at Tuesday's close, which quickly spread to Asian markets. Hong Kong was the exception, suppressed by fears that Beijing would use force to invade local protesters.
But the enthusiasm for buying fades overnight and US futures point to lower openness as markets handle the fact that US tariff delays have brought the two countries no closer to resolution.
3. US 2- and 10-year notes on the background of peak yields
The global bond issue turned again, sending yields down sharply after a short pause a day earlier.
Markets are closely monitoring the yield on Treasury notes at 2 and 10 years as the spread moves around one base point. Going below that would result in an inverted yield curve, which economists warn could be a sign of a recession.
The flight to safety and the easing of central bank policy around the world has sent bond yields down the queue. The German Bund, the euro area safe haven indicator, has reached a new record low of -0.64% after GDP failed to elicit signs of urgency from the government in providing some kind of fiscal package to support the economy.  4. Cisco steps up to the earnings chart
Cisco (NASDAQ 🙂 will be the focus of earnings after the end of the second quarter reporting season, with less than 50 S&P companies remaining on the calendar.
The company will report amid fears that lower costs for network equipment companies may slow growth.
The slowdown in network spending was put in the spotlight last week when NetApp (NASDAQ 🙂 warned that its quarterly earnings would miss estimates due to uncertainty about global prospects.
5. Oil drops in the event of unexpected stockpiling
slid against the backdrop of other signs of global economic weakness and the surprising accumulation of crude oil in the United States.
A weekly report from the American Petroleum Institute, published late Tuesday, showed an unexpected 3.7 million barrels.
The US Energy Information Administration will release at 10:30 am ET (2:30 pm GMT) against the backdrop of a 2.78 million barrel draw.
Read more : – Barani Krishnan  – Reuters contributed to this report.
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