A global sell-off swept through financial markets on Friday, hitting equities, currencies, and bonds simultaneously. Investor sentiment has deteriorated markedly amid concerns that the U.S. Federal Reserve may delay further interest rate cuts, fueling a broad shift toward risk aversion. Technology stocks were hit the hardest — futures on the Nasdaq 100 dropped 0.6% in early trading, extending Thursday’s decline of more than 2%. S&P 500 futures fell 0.3%, while Dow Jones futures declined 0.2%, signalling continued weakness on Wall Street. Germany’s DAX is already down more than 0.8%, and Poland’s WIG20 has fallen by more than 0.9%.
Fed Signals Caution — Investors Grow Uneasy
The worsening sentiment follows comments from Federal Reserve officials pointing to a cautious approach in assessing current macroeconomic conditions. Investors worry that the central bank lacks sufficient data to justify continued monetary easing, potentially forcing the Fed to maintain a “hawkish” stance for longer. Just a month ago, markets were almost fully pricing in a December rate cut — now the probability has slipped to around 50%.
British Pound Under Pressure Amid Fiscal Uncertainty
Currency markets are also feeling the strain. The British pound fell 0.5% to 1.3123 USD, making it the worst-performing major currency of the day. The sell-off was triggered by rising fiscal uncertainty after UK Chancellor Rachel Reeves abandoned plans to raise income taxes. While the decision may benefit households, it sparked a sharp sell-off in government bonds — gilt yields surged by 10 basis points to 4.54%, reflecting growing concerns about how the deficit will be financed.
Weak Chinese Data Deepens Market Anxiety
Adding to the unease, fresh economic data from China showed a sharp slowdown in activity at the start of the fourth quarter. Notably, investment fell at a record pace, and industrial output growth weakened, undermining hopes for a strong rebound in the world’s second-largest economy.
Mixed Sentiment in Crypto Markets
Cryptocurrency markets painted a mixed picture. Bitcoin extended its declines, falling 1.9% to 96,844 USD, its lowest level in six months. Ethereum, however, edged higher by 0.4% to 3,190 USD.
Bonds and Commodities Reflect Market Uncertainty
In the bond market, the yield on 10-year U.S. Treasury notes rose by 1 basis point to 4.13%, reflecting uncertainty regarding the Fed’s future policy path.
On the commodities front:
- Brent crude gained 1.4% to 63.89 USD per barrel,
- Spot gold rose modestly by 0.1% to 4,176.38 USD per ounce, indicating selective demand for safe-haven assets.
Source: ceo.com.pl – Fala risk-off ogarnia światowe rynki: funt pod presją, Bitcoin najniżej od pół roku
