- Equities continued to fall on Friday, with a global market index on pace for its worst week since June. In contrast, a measure of the dollar kept rising, reflecting expectations for significant interest rate increases from the Federal Reserve.
- US futures fell, indicating that the selloff that on Thursday caused the S&P 500 index to settle at its lowest level in over two months is still ongoing. The benchmark share index for Europe was on track for the fourth day of losses. Despite the fact that retail sales and industrial production in China exceeded expectations, equities fell in mainland China, Hong Kong, and Japan, with no effect on investor confidence.
- Policy-sensitive curve inversion that is regarded as a recession signal deepened as two-year Treasury rates continued their ascent to the highest level since 2007. The most recent US economic data presented a contradictory picture of the state of the economy, supporting the case for aggressive monetary policy. When the Federal Reserve meets the following week, swaps traders are pricing in a 75 basis-point increase, with some bets suggesting a full point change.
