- As worries rose that China's sputtering recovery and debt issues will extend to the global economy, stocks and bonds fell.
- China's unexpected rate cut didn't calm investors' concerns about policy measures to boost economy; instead, it increased them, sending Europe's STOXX 600 index down as much as 1.2% to its lowest level in a month. US equities futures pointed to a decline at market opening.
- World bonds decreased. Treasury yields extended their climb, with the 10-Yr rate trading at 4.23%, the highest since October. With the highest wage rise on record, UK gilts fell and the pound rose.
- China’s emergence from pandemic lockdowns has been unsatisfying, fanning concern the world’s economic engine is sputtering. China is fighting to contain a potential default at developer Country Garden after it missed payments on its debt.
- A number of recent events, including Argentina's devaluation and Russia's attempt to stop the ruble's decline with an emergency rate hike on Tuesday, contributed to China's rate cut, which decreased risk appetite.
- Fitch analyst warns it might have to downgrade some US banks - CNBC
- Money markets fully price a 25 BPS BoE rate hike in September.
- Traders increase BoE peak rate bets to 6% after UK jobs data.
