Global stock markets were on the back foot on Wednesday, as investors fretted over the impact of slowing growth in China and Europe on the global economy.
In the US, S&P 500 futures were down 0.2%, while Nasdaq futures were down 0.3%. European stocks were also lower, with the pan-European Stoxx 600 index down 0.7%.
The sell-off was triggered by data showing that German industrial orders fell more than expected in July. This was the latest in a string of weak economic data from Europe, which has raised concerns about the region’s growth prospects.
Investors were also worried about the impact of China’s property market woes on the global economy. China’s exports contracted at a slower pace in August, but the data still showed that growth was slowing.
Adding to the gloom, oil prices were down after Saudi Arabia and Russia said they would extend supply cuts to the end of 2023. This could dampen global economic growth by making energy more expensive.
The Federal Reserve is also keeping a close eye on the global growth outlook. The central bank is expected to raise interest rates in September, but it could delay further hikes if the economy slows down.
Overall, the mood on global markets was cautious on Wednesday. Investors were worried about the impact of slowing growth on corporate earnings and economic activity. This could lead to further volatility in the markets in the coming weeks.
- The release of US services PMI data on Wednesday.
- The outcome of the European Central Bank’s meeting next week.
- The progress of China’s property market reforms.
- The direction of oil prices.
Investors will be closely monitoring these factors for any signs of how the global economy is faring.