Growth jitters trip stumbling stocks and bonds

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LONDON, Sept 6 - The Wall Street open was set to mirror global stock declines on Wednesday after faltering growth in China and Europe heightened concerns about broader economic momentum, as investors weighed up the outlook for Federal Reserve interest rates.

In Asia, the Hang Seng Index closed down 150 points and China's benchmark CSI300 Index fell 0.22%, ahead of expectations that China's exports contracted at a slower pace in August. Brent crude futures surpassed $90 a barrel on Tuesday after Saudi Arabia and Russia both said they would extend supply cuts to the end of 2023. Both Brent and U.S. West Texas Intermediate crude futures were about 30 and 40 cents down as of 1058 GMT at $89.65 and $86.42, respectively.

As the U.S. returned from its Labor Day holiday, traders have been met with unusually high corporate bond issuance of over $36 billion due to hit the market this week, and $120 billion of investment grade dollar-denominated issuance expected this month, the note also said.

 

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