1. China unveils fresh $21.8 billion stimulus
After the close of trading in Chinese markets on Wednesday, China's central bank said it will inject 140 billion yuan, or $21.8 billion, into the financial system in an effort to boost liquidity.
Chinese equities struggled on Wednesday, as worries about whether Beijing had done enough to spur its slowing economy remained on investors' minds.
After a rollercoaster session swinging in and out of the red, the Shanghai Composite closed down 1.3%, reflecting investors' views that much more support was needed from the government and the central bank.
China cut interest rates and lowered the reserve requirement ratio for large lenders on Tuesday, in a much-anticipated move that some in the market believed was long overdue.
Recent steep declines in Chinese equity markets have sparked fears that they will hasten an economic downturn and undermined investor confidence in the government’s ability to revitalize economic growth.
The turmoil in markets began when China unexpectedly devalued the yuan on August 11, sparking fears over the condition of the economy.
2. U.S. stock futures rally more than 1% after Tuesday's reversal
During early morning hours in New York, the blue-chip Dow futures rallied 199 points, or 1.26%, the S&P 500 futures jumped 26 points, or 1.37%, while the Nasdaq 100 futures rose 49 points, or 1.21%.
On Tuesday, the Dow surged as much as 440 points, only to turn lower and close down 204 points, the biggest reversal to the downside since October 29, 2008, as investors looked past China's latest easing move amid ongoing concerns over the deteriorating outlook for the Asian nation's economy.
3. European markets resume decline
Germany's DAX dropped almost 2% on Wednesday, while France’s CAC 40 and London's FTSE 100 were both down around 1.5%, as investors resumed their focus on the deteriorating outlook for China and its impact on the global economy.
4. WTI oil futures stuck below $40 ahead of U.S. supply report
West Texas Intermediate oil futures held near the lowest level in more than six years on Wednesday, as market participants looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
U.S. crude was up 5 cents, or 0.11%, at $39.36 a barrel while Brent tacked on 14 cents, or 0.32%, to $43.35 a barrel.
5. U.S. data in focus
The U.S. is to release data on durable goods orders at 8:30AM ET, as investors look for fresh readings on the strength of the economy.
The report is expected to show that orders for durable goods declined 0.5% in July, following a gain of 3.4% a month earlier, while core orders are forecast to rise 0.4% after tacking on 0.6% in June.
China's slowing economy and global market turmoil have created fresh uncertainty over whether the Federal Reserve will start hiking interest rates next month.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
Some traders believe the Fed could postpone raising interest rates until December as officials are likely to remain concerned over global growth and inflation pressures due to China’s shock currency devaluation move and weak commodity prices.