Stocks fell sharply on Wednesday, adding to Wall Street’s poor start to the final quarter of 2019 as investors grapple with fears of an economic recession. Equities were down on the second day of the fourth quarter after the Institute for Supply Management said U.S. manufacturing activity fell last month to its lowest level in more than 10 years. China-U.S. trade talks still dominate, officials are scheduled to meet in Washington next week. Both sides have been in a trade war since last year that has rattled investor sentiment and economic growth expectations.
Oil headed toward a two-month low after swelling inventories in the world’s biggest economy added to a pessimistic and weakening economic backdrop.
Futures fell as much as 2.7% on Wednesday in New York after U.S. oil stockpiles rose by 3.1 million barrels last week, according to the U.S. Energy Information Administration. The increase exceeded the median forecast from analysts and was the biggest rise since May. The price decline was also exasperated by a slide in broader equity markets, fueling fears about the American economy slowing.
The Canadian dollar is weaker against most currencies and will likely stay that way till equities turn around.