A look at the day ahead from Karin Strohecker.
Investors are increasingly uneasy at signs central bankers in Europe and elsewhere are mulling a retreat from the easy-money policies that have provided much of the ammunition for stock market gains. So ahead of an ECB meeting where a stimulus slowdown is likely to be debated, stocks are sliding.
September has already seen many major indexes, from the S&P 500 to STOXX 600, ease after multi-month winning streaks. Both European and U.S. equity futures point to more falls ahead on Thursday, while Treasury and Bund yields are off the mid-July highs hit earlier this week.
But there's much more than an ECB meeting to fret about -- Beijing's regulatory crackdown shows no sign of a letup.
Chinese gaming and media stocks - including Tencent Holdings (OTC:TCEHY) and NetEase (NASDAQ:NTES) - have suffered further sharp falls after regulators summoned gaming firms to ensure they implemented new rules for the sector.
The impact of the widening crackdown is being felt as far as Tencent shareholder Prosus (OTC:PROSF) in Amsterdam which is set to open 3.5% weaker.
Shares and bonds in the embattled Evergrande Group too slumped further after media reports the property developer would suspend interest payments due on some loans and all payments on its wealth management products.
And then there is the U.S. debt ceiling quagmire, with Treasury Secretary Janet Yellen warning again that cash and extraordinary measures might run out in October.
On the data front, China factory gate inflation jumping 9.5% to a 13-year-high in August shows no let up in price pressures. In Britain, a lack of new homes for sale boosted house prices again.
Corporate news a-plenty too. EasyJet will raise more than 1 billion pounds ($1.4 billion) through a share sale. Similar news elsewhere in the travel sector too, with Japan Airlines announcing $2.7 billion in borrowing to weather the prolonged COVID-19 impact.
Key developments that should provide more direction to markets on Thursday:
ECB holds monetary policy meeting and presser
-Lloyd's of London swung to H1 pre-tax profit of 1.4 billion pounds, helped by rising premium rates
-Fed speakers: San Francisco Fed President Mary Daly 1205 GMT; Chicago President Charles Evans 1505 GMT
-Emerging markets: Malaysia, Peru, Serbia, Ukraine central bank meetings
Auctions: U.S. 30-year bonds, 4-week t-bills.
U.S. earnings: Oracle (NYSE:ORCL)
($1 = 0.7263 pounds)