[MARKET ANALYSIS] Higher energy prices and yields weigh on global equities as markets await for rate decisions by the Fed, BoE and BoJ

European bourses (STOXX 600 -0.8%) are entirely in the red, as higher energy prices and yields continue to weigh on equities. Not much in terms of geopolitics overnight, outside of the continued strikes on Saudi airbases by the Houthis. On the data front, the UK jobs report was mixed; payrolls fell more than expected while the unemployment rate held steady. Little reaction was seen in the FTSE 100. Over in Asia, South Korea's main stock exchange saw its first after-hours trading session, trading between 16:00-20:00 KST. According to data cited by Bloomberg, volatility spikes in individual stocks triggered brief trading halts 1,637 times, over 4x the number during the regular session. This shows the lack of liquidity provided and will therefore remain risky until institutional traders provide more liquidity. Sectors highlight the negative bias, with Retail the only sector printing modest gains. Financial Services is the clear sector laggard, with Basic Resources and Consumer Products & Services following closely behind. Key movers include: Acciona Energia (+3.8%), as EQT and Norway's Sovereign Fund partner to bid for the Co.; GSK (+0.4%), announces the acquisition of a potential best-in-class trispecific TCE from Chimagen Biosciences; AXA (-1.0%), despite expecting underlying EPS and ROE at the top end of their target range; Puig (-2.9%), purchases the remaining 50% stake in Isdin for EUR 1.2bln. US equity futures follow their European peers, with focus remaining on the FOMC policy announcement on Wednesday. According to Macro Risk Advisors, an 8-10% pullback in the S&P is expected if the Fed starts a rate-hiking cycle, as higher rates will "compress margins in companies that cannot pass costs through as well as deliver a volatility shock into a market that is not positioned for it."