Signs of German recession and global economic turmoil

Financial jitters were felt worldwide after new data showed the German economy hurtling toward a recession and factory output in China growing at its slowest pace in 17 years.

The ominous data sent Wall Street stocks into one of their worst declines of the year, and the ripples continued today with Asia markets down in early trading.

Details: Germany’s economy shrank 0.1 percent from April through June, and it has been treading water for the past year, the government’s official statistics agency said. Deutsche Bank analysts predicted that the economy would continue to shrink in the current quarter, which would meet the technical definition of a recession.

Impact: The numbers are among the most tangible consequences of President Trump’s global trade tariffs for China as well as for Germany, which sets the tone for the rest of Europe. Mr. Trump is inflicting pain on countries he accuses of unfair trade practices, but economists warn that the pain is likely to boomerang onto the U.S.