Global equity markets faced renewed selling pressure as risk sentiment deteriorated, leading to significant declines across major indices. In Asia, the Nikkei fell 2.7%, while China's Shanghai index dropped 3.0%. US markets also suffered, with the S&P 500 down 1.2% and the Nasdaq losing 2.9%.
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In the currency markets, the Australian and New Zealand dollars were particularly affected. The AUD/USD decreased by 0.1%, with the potential short-lived movement above 0.7000. The NZD/USD fell 0.2%, attributed to a weaker-than-expected inflation report from New Zealand. Contrarily, the Japanese yen strengthened as investors sought safer assets during the sell-off.
Attention now shifts to upcoming PMI reports, which provide insights into global economic activity amidst the uncertainty. Australia will release its PMI data at 9:00 AM, followed by Japan and Europe. The US figures will also be closely monitored, particularly after last month’s robust readings highlighted the country’s economic strength.