Asian Markets Lower on German Recession Fears

Asian shares dropped and oil prices fell to two-year lows on Friday after weak German export data raised fears that a recession at the heart of Europe could slow down the global economy.  Japan’s Nikkei share average .N225 fell 1.1 percent in early trade while MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS shed 0.8 percent.

Concerns about global economic growth hit oil prices hard, with Brent oil prices LCOc1 falling to $89.24 a barrel, its lowest level since mid-2012.  U.S. crude futures CLc1 traded at $84.68, having fallen to $84.06 on Thursday, its lowest level in almost two years.

Investors have long believed that a solid U.S. recovery will eventually help lift many other sluggish economies around the world, including those in Europe.  But now there is growing fear that the U.S. economy – the world’s largest, but less than a quarter of the entire global economy – cannot escape unscathed when Europe is stalling and many other big economies, including China, Japan and Brazil, face their own hardships.

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.