► In Europe, the Stoxx 600 remained relatively unchanged. The important Gfk consumer confidence index in Germany came in lower than estimated at a very pessimistic -26.5 (-26.0 expected). The decline in the GfK Consumer Confidence index indicates growing consumer pessimism, leading to potential reductions in spending, affecting businesses, and hinting at a broader economic slowdown or possible recession. European markets await the release of key inflation data from Germany (Sept 28) and the Eurozone (Sept 29) to get a better picture of it's economic health.
► In the US, equity futures rose slightly after Tuesday's decline saw both the S&P 500 and Nasdaq 100 drop by another hefty 1.5%. Policy wise, the US Fed seems to have a consistent message of “tighter policies might stay if the economy outperforms” – making it hard for markets to start a sustainable rally as positive economic data could mean rates remain high-for-longer. There was also a drop in the CB consumer confidence index, 103 was noted, missing estimates (105.5). Additionally, potential measures to avert a US government shutdown by October 1st are being discussed. Currently US equity futures are trading slightly positive in pre-market trading.
► Yields on US Treasuries slightly declined but remain near decade highs, while the USD holds strong. The JPY's performance against the USD is being closely monitored for any intervention signals from Japanese officials.
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