Recession fears trounce rate cut cheer in latest market sell-off


Turbulent times: Traders on the floor of the New York Stock Exchange. A shaky start to September follows the global rout on Aug 5. — AFP

MOUNTING unease over the US economic outlook and a seasonally weak month for stocks have created another perfect storm of global market volatility, leaving investors scrambling for protection and fearing another round of currency chaos.

Following a rapid recovery for risky assets such as stocks and high-yield bonds from a chaotic early August sell-off, traders have lost their short-lived optimism that US interest rate cuts would support growth.

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