Markets spiral downwards on fears of German recession

Slowdowns in China and US add to sense of panic, leading investors to dump shares and buy bonds

The prospect of Germany sliding into recession and sharper-than-expected slowdowns in China and the US sent jittery financial markets spiralling downwards across the world to lows last seen in May.

Investors dumped shares and bought safer government bonds, adding to the sense of panic that has grown steadily following Donald Trump's threat this year of extending tariffs to all Chinese exports to the US.

What is the yield curve?

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