China Trade Tensions and Weakness: Market Reactions and Job Gauges

Global markets are experiencing a downturn due to a deepening selloff in China, while awaiting crucial updates on U.S. employment. Hong Kong's Hang Seng index fell over 3%, recording its worst day since March, and Chinese banks listed in Hong Kong saw their worst two-day performance in almost 12 years. Shanghai stocks fell slightly, while Tokyo, Seoul, and European shares experienced heavier losses. Bond markets tightened, with U.S. and European government bond yields rising, and the Federal Reserve's latest policy meeting revealed a hesitant governing committee restating plans for two more interest rate hikes this year. The focus now turns to four critical readouts on the U.S. labor markets, which will likely impact Fed thinking. Additionally, Meta Platforms launched Threads, a direct challenge to Twitter, gaining millions of users in hours.