India Markets closed

Wall St drops and government bonds rally amid recession fears

Mamta Badkar in New York, Philip Georgiadis and Sarah Provan in London and Daniel Shane in Hong Kong

Weak economic data from Germany and China renewed investor jitters over the health of the global economy, sending US and European stocks lower and reigniting a rally in government bonds as a closely watched part of the US yield curve inverted for the first time in more than a decade. Wall Street was sharply lower, with the S&P 500 down 2.9 per cent in a broad-based decline to 2840.60 — the lowest close in more than two months — with energy and financial stocks the biggest laggards. The Nasdaq Composite and Dow Jones Industrial Average both shed 3 per cent.