China released its GDP figures for the third quarter of 2018, which showed economic growth slowing to 6.5 percent year-over-year.
The latest GDP announcement by the world’s second-largest economy missed expectations for a 6.6 percent in the quarter from July to September compared to a year earlier, according to analysts polled by Reuters. That is the weakest pace since the first quarter of 2009.”
“The combination of slower global economic growth, ongoing US-China geopolitical/trade concerns and the increased likelihood the FOMC raises the funds rate by more than is currently discounted (75bps over the next 12 months) is weighing on investment sentiment,” Elias Haddad, senior currency strategist at Commonwealth Bank of Australia, said in a morning note, referring to the Federal Open Market Committee.
Overnight on Wall Street, stocks saw steep declines and continued their generally poor performance for the month of October. The Dow Jones Industrial Average fell by 327.23 points to 25,379.45, while the S&P 500 slipped by 1.4 percent to 2,768.78 and the Nasdaq Composite shed 2.1 percent to close at 7,485.14.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, surged by 15.29 percent to 20.06 on Thursday. Last week, the index saw its highest level since February. The VIX measures implied volatility on S&P 500 index options.