New York open: Global markets take a Friday flop

Global stock markets took a Friday flop as investors grappled with the potential of sustained higher global interest rates.

The trajectory of global stocks mirrored the downturn on Wall Street for much of the week as encouraging US economic data quashed hopes that the Federal Reserve would swiftly implement rate cuts.

Equity market declines are a pass-through repercussion of government debt markets. Yields on the benchmark 10-year US Treasury had reached their highest point since 2007 on Thursday before easing off Friday.

US futures contracts indicate a subdued opening on Wall Street.

A steady stream of weak economic data releases from China amplified traders' apprehensions. These reinforced concerns that the world's second-largest economy might require a prolonged period of low rates and government stimulus before having any chance of fully recovering from the profound impacts of three years of draconian Covid-19 restrictions.

Traders remain reticent to buy the dip instead, preferring the comfort of the sidelines to avoid a Freaky Friday's dreaded options expiry trap door, especially with traders heading into their annual 2-week summer holidays. During this time frame, there is usually a decreased willingness to take on risk, particularly in light of the potential emergence of negative headlines, not to mention the unknowns around the Jackson Hole summit.

Otherwise, the financial world will focus on next week's results from AI-darling Nvidia.