US equity averages have taken a lead on the downside this week, with the previously more vulnerable European equity indices having taken global markets lower in latter March, during the current correction phase.
The European equity average selloff has more recently been driven by slowing economic data, of note being last Friday’s (22nd March) German Manufacturing PMI data.
The US equity vulnerability since last week has primarily been due to concerns regarding plunging US Treasury (UST) yields, with the 3 month-10yr section of the UST yield curve (YC) having inverted.
The inversion of this segment of the UST YC has previously been a precursor to a recession in coming years.
Our focus today is on the broad US benchmark average, the S&P 500.
See the full article here: https://www.fxexplained.co.uk/forex-articles/current-market-analysis/us-equity-averages-threaten-deeper-corrections/