- Asian stocks, bonds, and currencies fell in the aftermath of the broad-based selloff on Wall Street, as higher-than-expected inflation data fueled bets on the Federal Reserve raising interest rates.
- Japan's, Hong Kong's, and Australia's equity indices all fell after the S&P 500 fell more than 4% and the Nasdaq 100 fell more than 5% in the US. European equity futures fell, while US contracts rose marginally.
- Swaps traders believe the Fed will raise interest rates by three-quarters of a percentage point next week, with some betting on a full point increase. As a result, investors are weighing the prospect of tighter conditions across a wide range of markets after recently reinvesting in risky assets in the hope that inflation will cool further.
