A softer-than-expected ISM report on U.S. manufacturing has heightened concerns about the economic outlook
Markets worry the Fed is behind in easing rates, with increased expectations for a 50-basis-point cut next month, up from the previous 25 bps consensus.
Growth worries have led to a significant selloff in stocks, impacting investor sentiment.
The safe haven yen and Swiss franc have gained as investors seek stability amidst economic uncertainty.
U.S. Treasury yields have plummeted, reflecting doubts about a soft landing for the U.S. economy.
Geopolitical issues, including tensions involving Israel and Hamas, continue to weigh on market sentiment.
With a light data calendar in Europe, attention shifts to the U.S. nonfarm payrolls report, where a miss could accelerate risk aversion.
Japan’s Nikkei faces its worst day in over four years, influenced by Wall Street’s decline and a stronger yen affecting exporters.