Asian shares declined on Wednesday following a global rout overnight with attention on Shanghai as markets resumed trade after a week-long holiday. Disappointing data from Germany, the euro zone’s largest economy, hit sentiment overnight. The country reported a shocking 4 percent monthly drop in industrial production for August, the worst reading in over five years.
Furthermore, the International Monetary Fund downgraded its assessment of the global economy. It now expects growth of 3.8 percent next year, down from its July forecast of 4 percent. The fund also said there’s a 1-in-3 chance of the euro zone falling back into recession.
Those growth concerns saw Wall Street’s three major indices drop more than 1.5 percent each with the S&P 500 hitting an eight-week low. European shares tumbled more than 1 percent each with Germany’s Dax index closing at its lowest in nearly two months.
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