► Global conviction that US interest rates might rise further pushed the MSCI all-country equity index to a six-month low. European shares also opened 0.5% lower, while US futures followed a downward trend after the S&P 500 index hit a four-month low. Recent selloffs were largely influenced by robust US job data from Tuesday and numerous hawkish remarks from Federal Reserve officials. The market expects a strong likelihood of rate hikes in the coming months, fueled by this data and commentary.
► In Europe, investors are on the lookout for services PMI data, especially after the region's weak manufacturing PMI data earlier this week. Germany and the Eurozone saw an increase in services PMI, while France saw a decline. Retail sales in the Eurozone fell well short of expectations, dropping by a dramatic -1.2% month-on-month (-0.3% was expected), reinforcing the picture of a weakening economy.
► In the US, all major indexes closed in the red on Tuesday, led by a stronger-than-expected US jobs report that pushed Treasury yields upwards. BlackRock's chief Asia Pacific strategist, Ben Powell, hinted that the Federal Reserve might maintain its current stance. He emphasized that tightening in financial markets will persist, leading to potential negative repercussions. Currently US equity futures are trading lower after a negative and broad selling in the previous session.
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