Global share markets retreated on Wednesday following a tech-led selloff on Wall Street, while the dollar gained ground ahead of the Federal Reserve’s Jackson Hole symposium later this week.
European stock futures pointed lower and most Asian markets slipped, with Taiwan’s TAIEX and South Korea’s KOSPI among the hardest hit. Japan’s Nikkei fell 1.7% and Hong Kong’s Hang Seng Tech Index dropped 1.3%. MSCI’s broad Asia-Pacific index outside Japan slid over 1%. In Europe, EUROSTOXX 50 futures lost 0.64% and DAX futures dropped 0.63%. U.S. futures also weakened, with S&P 500 down 0.27% and Nasdaq off 0.44%.
Selling pressure deepened after reports that U.S. Commerce Secretary Howard Lutnick is exploring equity stakes in chipmakers such as Intel (INTC) under the CHIPS Act. The move follows other interventionist deals, including a U.S. arrangement allowing Nvidia (NVDA) to sell chips to China in exchange for a 15% cut of revenues. “These developments signal that the U.S. government is heading in a concerning and more interventionist direction,” said IG’s Tony Sycamore.
In commodities, Brent crude rose 0.15% to $65.89 and WTI crude added 0.1% to $62.41, as investors weighed mixed signals from talks over Russia’s war in Ukraine. President Donald Trump said the U.S. would help guarantee Ukraine’s security in a potential deal, while keeping open the possibility of air support but ruling out ground troops.
Attention now shifts to Jackson Hole, where Fed Chair Jerome Powell is set to speak Friday. Markets are almost fully pricing in a rate cut next month, though analysts caution that conflicting inflation signals complicate the outlook. “It is hard to decipher whether the Fed would emphasize risks on the jobs side or sit firm,” said Mizuho’s Vishnu Varathan.
On currencies, the euro fell 0.13% to $1.1633, sterling slipped 0.16% to $1.3470, and the New Zealand dollar tumbled over 1% after its central bank cut rates and flagged more easing ahead. Spot gold edged down 0.07% to $3,312.89 an ounce.
