European markets are set for a negative start to the new trading month, having closed out August lower as traders grapple with fears of higher interest rates and a looming economic downturn.Market jitters have been prevalent since Friday after hawkish remarks from Federal Reserve Chair Jerome Powell. On Tuesday, New York Fed President John Williams called for a “somewhat restrictive policy to slow demand.”U.S. stocks fell for a fourth-straight day on Wednesday, the last trading session of August, putting the summer market comeback in doubt as investors weighed the Federal Reserve’s inflation-fighting efforts.Meanwhile, shares in the Asia-Pacific are trading lower Thursday as investors digested the results of a private survey on China’s factory activity which showed the sector slipping into contraction this month. U.S. stock futures fell slightly on Wednesday night.cnbc