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Amid escalating selling pressure on risk assets, global markets witnessed a collective retreat across major financial hubs in Asia, Europe, and Latin America. The Taiwan Stock Exchange index recorded a significant drop of 3.48% by the close of the session, reflecting intense selling pressure. In Mexico, the S&P/BMV IPC index declined by approximately 0.37% at the end of trading, while Sweden's OMX Stockholm 30 index fell by 1.18%, aligning with the broader retreat in European markets.
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Sign InThe decline in Sweden follows the release of domestic inflation data, which showed the annual Consumer Price Index (CPI) rising to 0.8% in June from a previous contraction of 0.1%, according to economic calendar data. Meanwhile, global sentiment was weighed down by US services sector data, where the ISM Non-Manufacturing PMI reached 54.5, exceeding the 53.7 forecast and sparking concerns over persistent inflationary pressures, per market data.
Looking ahead, traders are closely monitoring upcoming US non-farm payroll data and its impact on Fed policy, especially after initial jobless claims reached 225,000 (as of June 4, 2026). Technical support levels for European indices remain in focus after the Swedish OMX broke key levels during the latest session. Speeches from central bank officials, including an upcoming address by ECB President Lagarde, will be primary catalysts for risk appetite in the coming days.