"The markets are ending the week on a low note as the global selloff continued in Asia and Europe this morning, prompted by rising uncertainty stemming from the U.S. economy. Doubts about a much-anticipated December interest rate cut from the Fed are mounting, with the likely outcome obscured by patchy data after Washington's government shutdown. Wall Street was bumpy yesterday. The S&P 500 and Dow Jones posted contractions of more than 1.6%, while the Nasdaq Composite fell by 2.3%."
"The VIX volatility index shot up by more than 20%, suggesting that skittish analysts expect the turbulence to continue. Europe was down in early trading Friday, most notably London's FTSE 100 and Madrid's IBEX 35, which dropped by more than 1% apiece. Germany's DAX also dropped 0.79%. In Asia, Japan's Nikkei 225 fell 1.77% at the end of the week, while the Shanghai Stock Exchange dropped 0.97% and Hong Kong's Hang Seng Index fell 1.85%."
"South Korea's KOSPI lost an eye-watering 3.81% as foreigners pulled their money out of the country. Part of the unease in the market stems from the Federal Open Market Committee's (FOMC) final base rate decision at the end of the year. A month ago, investors were placing the likelihood at near-95% that Chairman Powell would announce a 25bps cut in the final Fed meeting of the year. Fortune reported earlier this week that these odds have steadily fallen, and at the time of writing sit at 50/50 for a cut or hold, per CME's FedWatch barometer."
""The Democrats may have permanently damaged the Federal Statistical System with October CPI [Consumer Price Index] and jobs reports likely never being released," White House Press Secretary Karoline Leavitt"
Global equity markets dropped across the U.S., Europe and Asia as investors reacted to rising uncertainty about the U.S. economy and a possible December Federal Reserve rate cut. Major U.S. indices declined more than 1.6% and the Nasdaq fell 2.3%, while the VIX surged over 20%, signaling elevated expected volatility. European and Asian benchmarks fell, with South Korea's KOSPI plunging 3.81% amid foreign outflows. Odds of a 25bps Fed cut shifted from near 95% to roughly 50/50, influenced by hawkish FOMC comments and incomplete economic data caused by a U.S. government shutdown, and political remarks warned of damaged federal statistical reporting.
Read at Fortune
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