The focus was on Britain today as political turmoil deepened with a key vote on Brexit being delayed. British Prime Minister Theresa May abruptly postponed a parliamentary vote on her Brexit agreement. This saw global risk assets taking a hit while the pound came under pressure.
Separately, disappointing data from major economies including China and Japan got the traders concerned about global economic activity. The ongoing Sino-U.S. trade battle has also clouded the outlook for world growth.
The U.S. central bank is however set to raise rates next week as the economy is running well above potential, with inflation remaining at target. But whether the Fed will maintain the same tone next year, is something the traders are trying hard to determine.