An equities rout that wiped out this year’s gains for U.S. stocks is poised to spread to Asia Thursday as concerns mount that corporate profits and economic growth are peaking amid rising borrowing costs. Treasuries rallied for a second day on demand for haven assets and the dollar climbed.

Asian futures sunk, threatening to push the MSCI Asia Pacific Index deeper into a bear market with the gauge already down 20 percent from a January peak. The S&P 500 Index erased this year’s gains following mixed earnings reports from companies such as AT&T and Texas Instruments. The benchmark extended its October rout to almost 9 percent, making it the worst month since February 2009, while the Nasdaq Composite Index fell into a correction.

Sentiment has been tested in October, with stocks poised for their worst month in more than six years as the effects of trade tensions, geopolitics and rising Federal Reserve interest rates begin to bite. Investors remain apprehensive as a flood of earnings, while mostly stellar, have come with warnings about the future impact of tariffs and rising costs.

Not helping matters Wednesday was underwhelming economic data, particularly on the rate-sensitive housing front with new home sales continuing to slide. Traders also had to deal with reports that potential bombs were sent to two former U.S. presidents and the New York headquarters of CNN.

“The fear is palpable in stock markets at the moment,” Greg McKenna, a markets strategist at McKenna Macro, wrote in a note Thursday. “When folks are struggling to explain the driver of a move that means an obvious circuit breaker is also not in evidence. So this could get much worse before it gets better. Collapses happen after falls. That’s the danger.”

Elsewhere, European politics were also in focus, with Italian Prime Minister Giuseppe Conte doubling down on his government’s budget proposal and U.K. Prime Minister Theresa May’s cabinet descending into conflict. The pound weakened, and the region’s bonds rallied. The euro dropped following disappointing manufacturing data.

Here are some key events coming up this week:

Earnings season rolls on with notable highlights including Twitter, UBS and Total. ECB policy makers could on Thursday confirm that asset purchases will end this year, reiterating its pledge to keep interest rates at record lows through summer 2019. President Mario Draghi will hold a press conference. U.S. gross domestic product growth may have slowed in the third quarter, yet remained near its best pace since mid-2015, according to forecasts ahead of Friday’s release.These are the main moves in markets:

Stocks

Futures on the Nikkei 225 Stock Average were down 2.7 percent in Singapore. Australia S&P/ASX 200 Index futures fell 1.6 percent. FTSE China A50 contracts lost 1.4 percent. Hong Kong Hang Seng Index futures lost 0.3 percent. The S&P 500 dropped 3.1 percent, while the Nasdaq Composite Index tumbled 4.4 percent.

Currencies

The yen rose 0.2 percent to 112.16 per dollar. The offshore yuan was steady at 6.9475 per dollar. The Bloomberg Dollar Spot Index was 0.4 percent stronger, reaching the highest level of the year. The euro traded at $1.1398 after declining 0.7 percent.

Bonds

The yield on 10-year Treasuries dropped seven basis points to 3.10 percent.

Commodities

West Texas Intermediate crude rose 0.6 percent to $66.82 a barrel. Gold was steady at $1,233.84 an ounce.