Rising crude oil prices, surging bond yields as well as anxiety surrounding the AI theme exacerbated the negative sentiment in global financial markets ahead of interest rate decisions by key central banks.

Though rate hike expectations from the Federal Reserve edged down from the highs witnessed on Monday, it remains overwhelmingly tilted towards a hike. The CME FedWatch tool that tracks the expectations of interest rate traders shows the likelihood of a quarter-percentage rate hike by the Federal Reserve on September 16 at 92.5 percent, versus 93.5 percent a day earlier.

Wall Street Futures are trading in negative territory. Major benchmarks in Europe are trading on a mostly negative note. Earlier in the day, Asian markets had finished trading on a heavily negative note.

The six-currency Dollar Index has gained close to a quarter percent. Crude oil prices have increased amidst a worsening outlook on energy supply from the Middle East region.

Sovereign bond yields hardened across tenors in the U.S. but are moving in a mixed fashion elsewhere. As rate hike worries strengthened, the U.S. ten-year yield touched the highest level since 2007.

Gold has slipped more than half a percent. Cryptocurrencies are trading on a mostly negative note.

Here is a snapshot of the major world markets at this hour.

Stock Indexes:

DJIA (US30) at 52,277.80, down 0.27%
S&P 500 (US500) at 7,607.30, down 0.17%
Germany's DAX at 25,423.43, up 0.03%
U.K.'s FTSE 100 at 10,675.85, down 0.20%
France's CAC 40 at 8,102.46, down 0.19%
Euro Stoxx 50 at 6,253.65, down 0.11%
Japan's Nikkei 225 at 63,492.00, down 0.00%
Australia's S&P ASX 200 at 8,672.50, down 0.88%
China's Shanghai Composite at 3,864.28, down 0.54%
Hong Kong's Hang Seng at 24,667.24, down 1.00%
South Korea's KOSPI at 6,627.26, down 0.85%

Currencies:

Dollar Index at 99.63, up 0.24%
EUR/USD at 1.1536, down 0.12%
GBP/USD at 1.3476, down 0.19%
USD/JPY at 154.81, up 0.31%
USD/CHF at 0.8180, up 0.07%
AUD/USD at 0.7128, down 0.17%

Ten-Year Govt Bond Yields:

U.S. at 5.011%, up 1.01%
Germany at 3.5274%, down 0.12%
France at 4.485%, down 0.22%
U.K. at 5.3794%, up 0.14%
Japan at 3.033%, up 1.13%

Commodities:

Brent Oil Futures (Nov) at $105.90, up 0.21%
Crude Oil WTI Futures (Oct) at $102.30, up 0.90%
Gold Futures (Dec) at $4,323.20, down 0.66%
Silver Futures (Dec) at $63.67, down 0.73%

Cryptocurrencies:

Bitcoin at $77,137.40, down 0.98%
Ethereum at $2,479.65, down 1.65%
BNB at $719.20, down 0.73%
XRP at $1.40, up 0.42%
Solana at $100.95, down 0.89%

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