U.S. futures are trading in red, worries about growth came back

U.S. stock index futures fell Friday amid jitters over global economic growth sparked by dreadful manufacturing data out of Europe and the Federal Reserve’s cautious outlook on the U.S. economy.

There’s a host of worries out there and those worries continue to mount, аs a result, we have a market that is rethinking some of the optimism that was priced in.

IHS Markit said Friday that manufacturing activity in Germany dropped to its lowest level in more than six years in March. In France, manufacturing and services slowed down to their lowest levels in three months and two months, respectively. For the euro zone as a whole, manufacturing fell to its lowest level since April 2013.

These data sent the German 10-year bund yield to their lowest level since 2016, briefly dipping into negative territory.

These moves come after U.S. central bank surprised investors by adopting a sharp dovish stance on Wednesday, projecting no further interest rate hikes this year and ending its balance sheet roll-offs.

Market sentiment was boosted by the Fed’s updated outlook on interest rates, but the reasons behind it caused some concern.

The long-running trade dispute between the world’s two largest economies has battered financial markets in recent months, souring business and consumer sentiment.

Source: CNBC

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