Investors Avoid Risky Trades as Macroeconomic Outlook Deteriorated Across the Board

Macroeconomic events were weak across the board, sending stocks lower as investors fled from risky assets. China’s PMI data slid to the lowest level since March 2009. In the US, Moody’s warned that US AAA rating was at risk if policymakers failed to agree on the 1.2 trillion in spending cut over 10 years. Yields of German bunds soared after a disappointing auction of the country’s securities. Wall Street plummeted with DJIA and S&P 500 losing -2.05% and -2.21% respectively. Oil prices also slumped as vulnerable economic outlook is detrimental for energy demand.

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Investors Avoid Risky Trades as Macroeconomic Outlook Deteriorated Across the Board