1. Shipping Shipping is a critical indicator of global financial health because so many of the world’s goods travel by sea. This includes everything from crude oil to agricultural products to autos. Industry giant AP Moller-Maersk recently reported earnings and said demand had declined sharply. The latest data about dry bulk commodities-shipping costs, as tracked by the Baltic Dry Index, revealed that rates have fallen by a third so far this year.
2. GDP Forecasts Global economic organizations cut GDP forecasts simultaneously. The Organization for Economic Cooperation and Development’s May report on GDP improvement among its member nations said the economic expansion had faltered and the decline was expected to continue into 2012. The IMF made similar comments in June. The World Bank also expects a slowdown in global expansion and warned that prices of commodities and oil could cripple any further expansion...
3. Oil demand falls OPEC cut forecasts for demand. Last month OPEC released a report with its predictions for the year and stated, “Concerns over debt levels in Europe and the U.S., and signs of slowing economic growth in China and India, have spooked the market and raised fears in some quarters of a double-dip recession.”
4. Stock markets retreat The world’s major stock markets retreat in lock step. The stock indices in virtually every major nation have had large sell-offs recently. Markets in regions where investors believe that growth will continue to be robust ought to at least trade at the levels they did in early summer, but none do. The Dow Jones Industrial Average and other major indices in the U.S. have fallen 15% recently. Germany’s DAX has struggled after news that the economy there has slowed considerably, which had an impact on stock prices... …
Read about the rest: Nine Signs That a New Global Recession Has Arrived - 24/7 Wall St. http://247wallst.com/2011/08/22/nine-signs-that-a-new-global-recession-has-arrived/#ixzz1Vnoi9XyP
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