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Darkening clouds start to overhang global economic expansion

FILE - In this Thursday, July 5, 2018, photo, a ship to shore crane prepares to load a 40-foot shipping container onto a container ship at the Port of Savannah in Savannah, Ga. After galloping along for the past two years, the global economy is showing signs of weakening, with the United States, China and Europe all facing the rising threat of a slowdown. Few economists foresee an outright global recession within the next year. But the synchronized growth that powered most major economies since 2017 appears to be fading. (AP Photo/Stephen B. Morton, File)

WASHINGTON (AP) — After galloping along for the past two years, the global economy is showing signs of weakening, with the United States, China and Europe all facing the rising threat of a slowdown.

Few economists foresee an outright global recession within the next year. But the synchronized growth that powered most major economies since 2017 appears to be fading. The risks have been magnified by the trade war raging between the United States and China, the strife dividing Britain over an exit from the European Union and the Federal Reserve’s continuing interest rate hikes.

It’s all been enough to contribute to a broad retreat in global stock markets. Counting Tuesday’s deep losses, U.S. stock indexes, once up around 10 percent for the year, have surrendered all their 2018 gains.

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