US STOCKS-Recession fears hit Wall Street after grim China, German data

(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window.)
* Futures down: Dow 0.91%, S&P 0.87%, Nasdaq 0.97%

By Medha Singh
Aug 14 (Reuters) - Wall Street was set to open lower on
Wednesday, as poor economic data from China and Germany put the
focus back on the impact of a bruising Sino-U.S. trade war which
is pushing some major economies towards the brink of recession.
The outlook for Germany's export reliant economy was also
grim and Chinese industrial output growth cooled to a more than
17-year low, adding to headwinds for U.S. multinationals that
rely on global demand. The U.S. bond market showed red flags, with two-year
Treasury yields rising above those for 10-year paper for the
first time since 2007, pointing to the risk of recession.
US/
Wall Street's main indexes surged more than 1.5% on Tuesday
after Washington delayed the introduction of tariffs on some
Chinese consumer goods. Futures pointed to a drop of about 1% at the open on
Wednesday.
"It's almost as if global investors either don't buy the
tariff delay as a sign of real progress in the U.S.-China trade
war or have been too consumed by further evidence of global
economic weakness to care," BMO Capital Markets strategist
Stephen Gallo said.
At 7:00 a.m. ET, Dow e-minis 1YMcv1 were down 239 points,
or 0.91%. S&P 500 e-minis EScv1 were down 25.5 points, or
0.87% and Nasdaq 100 e-minis NQcv1 were down 75.25 points, or
0.97%.
Interest-rate sensitive lenders were among notable losers
before the bell. Bank of America Corp BAC.N , Citigroup Inc
C.N , JPMorgan Chase & Co JPM.N , Goldman Sachs GS.N , Wells
Fargo & Co WFC.N and Morgan Stanley MS.N were all down
between 1.5% and 2.4%.
Tariff sensitive chipmaker, which staged a comeback a day
earlier, were also down. Micron Technology Inc MU.O , Broadcom
Inc AVGO.O and Nvidia Corp NVDA.O among others slipped more
than 1%.