European stocks fell on Wednesday as Germany’s economy went into reverse, reviving fears of global recession and tempering a rally for equities after Washington delayed tariffs on some Chinese imports.

Europe’s biggest economy shrank 0.1% in the second quarter as the trade war and weak demand dragged on German manufacturers The euro zone as a whole reported gross domestic product grew just 0.2% in the same quarter.

The Euro STOXX 600 fell 0.4%. Markets in London .FTSE, Frankfurt .GDAXI and Paris FCHI lost from 0.2% to 0.6%. Wall Street futures gauges were also lower .

Bond markets were also flashing warning signals of recession. The gap between U.S. two-year and 10-year Treasury yields - a closely watched metric for signs of a slowdown - fell to less than a basis point after shrinking on Tuesday to its narrowest since June 2007.

The German figures, along with data showing the slowest growth for Chinese industrial output in 17 years stoking recession worries, knocked the wind out the sails for stocks.

Equity investors on Wall Street and Asia had cheered earlier when U.S. President Donald Trump pushed back a Sept. 1 deadline for new tariffs on remaining Chinese imports.

The S&P 500 .SPX, which had fallen 1% on Monday, rose 1.5% overnight, sending Asian stocks outside Japan up 0.6%. Benchmarks in Shanghai, Hong Kong and Tokyo all mirrored the surge in U.S. stocks.