WTI slides 4% below $74.00 on risk aversion

The widespread US recession-linked woes are playing into financial markets creating a risk-off mood. West Texas Intermediate crude is down over 4% on the day so far, falling back into the bearish trend once again and on the front side of what was momentary a counter-trendline.

At the time of writing, WTI is trading at $73.80 near the lows of the day having fallen from $77.86. Recession worries are triggering risk-off mood following the start of the week’s US data that fanned the flames of the Fed’s hawkish stance in financial markets.

On Monday, the ISM data indicated that its Non-Manufacturing PMI rose to 56.5 last month from 54.4 in October, indicating that the services sector, which accounts for more than two-thirds of US economic activity, remained resilient in the face of rising interest rates. The data beat forecasts that the Non-manufacturing PMI would fall to 53.1.

This has been raising concern the FOMC will potentially stick to the 75 basis point hiking when its two-day meeting wraps up on Dec.14.