Global Markets React to Economic Data Amid Rate Cut Speculations

Global and European markets are reacting to recent economic data releases as Asia faces a downturn. U.S. Treasury yields, inflation data, and Federal Reserve actions are closely monitored. The ECB is expected to cut rates, with global disinflation continuing. Market movements anticipate U.S. job data and political dynamics.

The global and European markets are witnessing significant reactions to recent economic data. Asian indices are experiencing a downturn, with the Nikkei losing 1.7%, adding to last week's near 6% decline.

Meanwhile, U.S. Treasury yields have retreated from their lows, and the dollar gained some ground on the yen. S&P 500 futures managed to recover early losses, trading up 0.3%. The ECB is widely expected to cut rates on Thursday, providing some optimism for European equity futures.

Economic data continue to influence markets, with the U.S. CPI report for August being a significant focus, forecasting a slowdown in inflation. Federal Reserve actions are critical, with discussions about a potential rate cut amid job data uncertainties and political factors surrounding the upcoming presidential election.

(With inputs from agencies.)