The closely watched "yield curve" flashed a warning sign that a recession could be looming while monthly US, French and German manufacturing indices all fell -- rattling investors who were already uneasy after this week's surprisingly weak outlook from the Federal Reserve.
A series of worse-than-expected economic releases from Europe have sounded the alarm bell not just for the bloc, but also the global economy, by providing further evidence of a worldwide slowdown in economic activity," said XTB analyst David Cheetham.
The so-called yield curve, which tracks the spread between short- and longer-term rates on US Treasury bonds, briefly inverted on Friday, with yields on three month bonds falling below those for 10-year notes -- the first time this had happened since before the global financial crisis in 2007.
The next economic "event" will likely cause the $ to collapse.