European equities markets were poised to open little changed, contrasting a spike in volatility on Wall Street overnight that sent Asia’s major bourses lower.

The Topix was 1.9 per cent lower at the close in Tokyo, at its lowest since October and the S&P/ASX 200 was off 0.9 per cent when trading wrapped in Sydney. The CSI 300 index, which tracks the largest companies listed in Shanghai and Shenzhen, down 5.1 per cent in late afternoon trading, was on track for its biggest one-day fall in two years. 

Futures tracking the Stoxx 50 index of large eurozone companies dropped 0.1 per cent on Friday, German Dax futures were up 0.1 per cent and FTSE 100 futures were down 0.5 per cent. 

The sell-off in global markets began at the end of last week, after a set of data pointing to robust US wage growth caused concerns about rising price pressures and stoked a sell-off in government bonds that had already been brewing this year. 

Following Wall Street’s worst day since 2011 on Monday, the retreat subsided midweek before resuming on Thursday, with the S&P 500 declining 3.8 per cent. 

The Cboe market volatility index (Vix), which tracks expected S&P 500 volatility over the next 30 days, rallied back above 33 on Thursday afternoon after dropping below 25 in early trading.

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