Australia

Australian shares are set to lose today following a disappointing selloff in the US. Bank shares sunk as stronger-than-expected economic data reiterated the need for aggressive monetary policy.

ASX futures slipped 81 points or 1.1% as of 8:00am on Friday, pointing to a loss at the open.

Shares in the US fell Thursday after jobless claims showed that the labor market remains strong, complicating the picture for the Fed's rates path.

Stocks started the day higher, then turned down by midday. Losses picked up steam in the afternoon. The S&P 500 lost 1.9% by market close. The tech-focused Nasdaq Composite dipped 2%, and the Dow Jones Industrial Average lost 1.7%, or 544 points.

The market has ricocheted this week as investors reevaluated their expectations for interest rates, with many traders growing increasingly convinced that the Fed will push rates higher than previously expected and keep them there for longer. Stocks fell on Tuesday after Fed Chair Jerome Powell said that the central bank is prepared to quicken the pace of interest rate increases if warranted.

Then, on Wednesday, Mr. Powell said that officials were keeping their options open, and that data would determine future changes. The S&P and Nasdaq edged higher Wednesday.

This week's labor market data could play a significant role in the Fed's decision at its meeting later this month.

In commodity markets, Brent crude oil shed 1.4% to $US81.49 a barrel while gold edged up 0.9% to US$1,830.56.

Australian government bonds dipped lower, with the 2 Year yield at 3.45% and the 10 Year at 3.70%. US Treasury notes were higher, however, with the 2 Year yield at 4.90% and the 10 Year at 3.92%.

The Australian dollar edged slightly lower to 65.81 US cents from its previous close of 65.89. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, edged down to 98.36.

Asia

Chinese shares ended lower after the country released muted February inflation data, indicating weak consumer demand. "The inflation downside surprise could slightly raise the probability of a moderate rate cut in the next couple of months," Nomura economists said in a note. Consumption and insurance stocks weighed on the market. China Tourism Group fell 1.7% and China Pacific Insurance declined by 1.2%. Telecom names were higher in volatile trading with China Mobile up 2.3% and China Telecom rising 5.4%. The benchmark Shanghai Composite Index ended 0.2% lower to 3276.09. The Shenzhen Composite Index fell 0.1% and the ChiNext Price Index declined 0.2%.

Hong Kong stocks ended lower, as investor worries grew over potentially more aggressive monetary tightening by the Fed. The benchmark Hang Seng Index shed 0.6% to settle at 19925.74. A mixed bag of sectors weighed on the market, with consumer goods and services providers leading the downturn. Restaurant operator Haidilao slumped 4.5%, dairy producer China Mengniu fell 3.1% and home-appliance maker Haier was 2.6% lower. Property developers extended their recent weakness. Country Garden dropped 3.9% and Longfor lost 2.4%.

The Nikkei Stock Average of Japan rose 0.6% to 28623.15, its highest level since Aug. 26. Gains were led by electronics and financial stocks thanks partly to the yen's recent weakness. NEC climbed 3.4% and major bank Resona Holdings gained 3.9%.

Indian stocks ended lower amid continued weakness in many Asian equity markets following the Fed's latest indication of possibly more aggressive interest rate increases. The benchmark Sensex index fell 0.9% to settle at 59806.28. Auto makers led the downturn, with Mahindra & Mahindra declining 3.3%, Maruti Suzuki 1.7% lower and Tata Motors losing 1.65%. IT-services providers, whose share prices are typically more sensitive to monetary tightening, also weighed on the market. Tech Mahindra lost 1.6% and Tata Consultancy slipped 1.5%.

Europe

European stocks fell after mixed trading in Asia. The pan-European Stoxx Europe 600 dropped 0.2%, the French CAC 40 shed 0.1% and the German DAX ended flat. Property shares weighed in Germany after real-estate company LEG Immobilien suspended its dividend for 2022.

The United Kingdom’s FTSE 100 Index fell 0.6%, or 45 points, as losses for industrial and packaging stocks offset gains for financial shares. Spirax-Sarco Engineering dropped 4% after the steam-system supplier reported lower-than-expected annual pretax profit. Packaging companies lost ground as D.S. Smith said in a third-quarter update that like-for-like corrugated-box volumes during 2H had been lower than in the comparative period. Smith's shares fell 0.7%, Smurfit Kappa dropped 2.3% and Mondi lost 2.6%. Still, Aviva gained 2.8% after the insurance company reported what Citigroup described as reassuring full-year results. The British publisher Informa slipped 0.1% despite announcing higher annual profit and revenue.

North America

Shares in the US fell Thursday after jobless claims showed that the labor market remains strong, complicating the picture for the Federal Reserve's rates path.

Stocks started the day higher, then turned down by midday. Losses picked up steam in the afternoon. The S&P 500 lost 1.9% by market close. The tech-focused Nasdaq Composite dipped 2%, and the Dow Jones Industrial Average lost 1.7%, or 544 points.

The market has ricocheted this week as investors reevaluated their expectations for interest rates, with many traders growing increasingly convinced that the Fed will push rates higher than previously expected and keep them there for longer. Stocks fell on Tuesday after Fed Chair Jerome Powell said that the central bank is prepared to quicken the pace of interest rate increases if warranted.

Then, on Wednesday, Mr. Powell said that officials were keeping their options open, and that data would determine future changes. The S&P and Nasdaq edged higher Wednesday.

This week's labor market data could play a significant role in the Fed's decision at its meeting later this month.

The Labor Department said Thursday that worker filings for US unemployment benefits jumped more than 10% last week. Nonetheless, jobless claims are still historically low as demand for labor exceeds the number of people looking for work. The monthly jobs report, which is closely watched by investors, will be released Friday.

Shares of SVB Financial Group, owner of Silicon Valley Bank, plunged 60% on Thursday. The bank said Wednesday that it intends to launch an offering of $1.25 billion of its common stock, and Moody's Investors Service subsequently downgraded the bank's credit rating. Silvergate Capital fell 42% after the bank said Wednesday it would voluntarily wind down operations.

The KBW Nasdaq Bank Index slipped 7.7%, its worst day since June 2020.