European stocks fell with emerging markets amid concern higher U.S. interest rates and China’s slowdown pose threats to the global economy.

A two-day rally in Chinese shares faltered and a downgrade of Brazil’s debt to junk underscored weakness in developing nations. The real tumbled 2.6 percent and government bonds slid. New Zealand’s dollar retreated after a rate cut and the yen fell on speculation the Bank of Japan will ramp up stimulus.

A rebound in global stocks this week ended in the U.S. on Wednesday after jobs data that bolstered the case for higher rates. Comments by Premier Li Keqiang that China still has “sufficient capability to respond” if growth falls below a reasonable range failed to buttress markets as data showed producer prices fell by the most since 2009.

“We’ve stopped most of the panic about China collapsing and the world falling apart,” said Ben Kumar, who helps oversee about $14 billion as a money manager at Seven Investment Management in London. “The next question we have to deal with is: is global growth strong enough to deal with a Fed rate rise?”

Read the article “Europe Stocks Fall with Emerging Markets as Brazil’s Real Slides” on bloomberg.com.