Global equities fell sharply Friday after Federal Reserve officials pushed back against expectations for a December rate cut, sending US futures lower and pressuring major markets from Tokyo to London. Investors grew cautious amid delayed US data, concerns over frothy AI-driven valuations, and fresh volatility in UK assets tied to budget speculation.

China's factory output and retail sales have grown at their slowest pace in over a year, highlighting significant economic challenges amid a trade war with the US and weak domestic demand. Industrial output rose by 4.9% year over year, and retail sales increased by 2.9%, both missing forecasts.

UK Prime Minister Keir Starmer and Chancellor Rachel Reeves have abandoned plans to increase income tax rates, opting instead to explore alternatives such as adjusting tax thresholds and introducing targeted levies. The decision, made ahead of the Nov. 26 budget, aims to avoid voter backlash and address a £30 billion fiscal gap.

The Reserve Bank of India has intervened in the offshore non-deliverable forwards market to support the rupee as it neared a record low against the US dollar amid concerns about US tariffs. The RBI's actions have helped stabilize the currency, which has depreciated by 3.5% this year, making it one of the worst-performing currencies in Asia.

Deutsche Bank CEO Christian Sewing is expected to unveil a three-year strategy focusing on higher profitability targets, particularly in the investment bank, when he speaks Monday. The strategy is expected to maintain the current approach of cost savings in retail banking and targeted spending in investment banking. Several investors also anticipate Deutsche Bank will raise its return-on-tangible-equity target to at least 12%.

Euro-denominated cross-border bank credit grew at an annual rate of 11% in the second quarter, narrowly outpacing dollar credit for the first time since Q2 2023, according to Bank for International Settlements data. While both euro and dollar lending eased compared to the previous quarter, the decline in euro lending was less pronounced.

US-listed spot bitcoin ETFs saw $869 million in outflows Thursday, their second-largest on record, as bitcoin fell below $100,000 and market risk aversion increased. The funds have lost $2.64 billion over the past three weeks, with ether ETFs also seeing their biggest withdrawal in a month.

The European Commission is drafting proposals to empower the European Securities and Markets Authority to oversee significant clearinghouses, depositories, trading venues and all cryptocurrency firms, similar to the US Securities and Exchange Commission. The proposals, which require approval from the European Parliament and the Council of the EU, include the creation of an independent executive board to oversee ESMA.

US and Swiss officials are close to a trade deal that would reduce the 39% tariffs that President Donald Trump imposed on Swiss imports. The deal also aims to address the trade surplus that Switzerland has with the US. Swiss Economy Minister Guy Parmelin says that talks between the two countries have been positive and that further communication will occur once details are finalized.

Citigroup is experiencing rapid growth in China, driven by renewed interest from investors and companies, CEO Jane Fraser says. The bank focuses on serving Chinese companies expanding overseas and clients with cross-border needs, Fraser says, adding that Citigroup's balance sheet remains strong amid recent challenges in the US financial sector.

Capital markets play a critical role in financing the US economy, providing 75.3% of financing for non-financial corporations through issuance of equity and debt securities. Debt capital markets are particularly dominant in the US at 76.8% of total financing, in contrast to other regions, where bank lending dominates at 83.9%. Discover more facts in SIFMA's Capital Markets Fact Book.