China’s economy slowed further in August

China’s economy slowed further in August, indicating more stimulus steps may be needed to shield the economy from the worsening effects of the trade war with the U.S. Industrial
output rose 4.4% on year, missing a consensus of 5.2%, while retail sales expanded 7.5% versus 7.9%. Working-level U.S.-China trade talks resume this week. Source: Bloomberg

Yield curve inverts: Recession indicator flashes red for first time since 2005

Shortly after 10 a.m. GMT on Wednesday, the yield on the 10-year U.S. Treasury bond dipped below the yield on the 2-year U.S. Treasury as the 10-year fell 1 basis point below the 2-year. The yield curve inversion has a strong track record of predicting a recession; each of the last seven recessions (dating back to 1969) were preceded by the 10-year falling below the 2-year. Source: Yahoo Finance