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Global equities have been hit by a one-two punch. The first punch was a jab in the form of rising scepticism over the bullish AI narrative. The second was an uppercut in the form of rising concerns over global growth. These first emerged in Europe and China, and then spread to the US following a surprise jump in the unemployment rate. Weaker growth data caused investors to bring forward expectations of central bank rate cuts. Ironically, this initially had a destabilizing effect on financial markets, as it led to an unwinding of the yen carry trade.