Ahead of the Fed decision, multiple pressures converge as European stocks and US stock futures fall together

Odaily Planet Daily News: European stocks opened broadly lower again, with selling in Italy particularly heavy. The overall backdrop remains firmly risk-off. Brent crude is trading above $107 per barrel, as another attack on Saudi energy infrastructure this week sparked fresh supply concerns, while the 10-year US Treasury yield has risen above 5.02%, the highest since 2007. The combination has intensified inflation worries just one day before the Fed decides its next monetary policy move, with Italy's benchmark index leading the decline after a sharp selloff yesterday, with bank stocks especially under pressure again. Yesterday's selloff also hit tech stocks (Prysmian and STMicroelectronics).

US futures also point to declines, with S&P 500 futures down about 0.4% after Wall Street was led lower by tech stocks yesterday. Nasdaq futures are currently down 0.3% on the day. The key issue for stocks right now is not just one thing going wrong, but the combined effect of oil above $100, US Treasury yields above 5%, a more hawkish Fed outlook, and lingering AI uncertainty. (Jinshi)