European stock futures fell on a bumpy day for Asia, as investors weigh the risks to global markets after a volatile week when policy decisions by central banks raised uncertainty.
Euro Stoxx 50 contracts slid 1%, and those for US shares fell 0.2%. MSCI’s Asia-Pacific Index dropped, with Japan’s Topix Index declining again after rebounding from earlier losses.
Benchmarks in China and Hong Kong gained, and those in Korea and Australia declined. The dollar weakened against major currencies, including the yen.
A Thursday summary of opinions from last week’s Bank of Japan meeting, when it raised rates, showed one member identified the neutral rate at 1%, while another called for timely rate increases to avoid rapid hikes.
Investors are watching for US jobless claims data Thursday to get more cues. Global markets have been rocked in the past week as investors prepare for the US and Japanese central banks to move in opposite directions, in turn undermining the yen’s role as a cheap source of funding for financial assets.
Markets have been in a tailspin since weak economic data last week fueled worries that the Fed’s decision to hold rates at a two-decade high is risking a deeper economic slowdown.
