- Asian equities trade mixed, mostly pressured, as US stock futures fail to impress bulls.
- Xi-Biden talks, pre-Fed consolidation defend bulls even as recession woes weigh on sentiment.
- Wall Street closed in the red as key companies propelled slowdown fears, yields rebound.
- US data, risk catalysts may entertain investors ahead of FOMC.
Market sentiment in the Asia-Pacific region fades the US session pessimism as traders remain divided over the Fed’s next move amid recession fears. Also contributing to the investors’ indecision could be the lack of major data/events, except for Australia's inflation numbers.
While portraying the mood, the MSCI’s index of Asia-Pacific shares outside Japan drops 0.80% intraday whereas Japan’s Nikkei 225 adds 0.40% intraday to 27,745 by the press time.
It’s worth noting that Australia’s ASX 200 prints mild gains as Aussie Q2 Consumer Price Index (CPI) missed hawkish market expectations. New Zealand’s NZX 50 adds 0.30% gains on a day amid the absence of risk-aversion and firmer US stock futures, not to forget cautious optimism surrounding the US President’s readiness for a virtual meeting with his Chinese counterpart Xi Jinping. Even so, Chinese equities remain depressed while tracking the Wall Street benchmarks. It’s worth noting that firmer prints of China’s Industrial Profits in June also couldn’t impress equity bulls in China.
Elsewhere, South Korea’s KOSPI and Indonesia’s IDX Composite fail to pare recent losses, struggling for fresh clues of late. On the other hand, India’s BSE Sensex snaps a two-day downtrend as traders brace for the Federal Open Market Committee (FOMC) meeting.
On a broader front, Wall Street closed in the red and the US Treasury yields remained mostly pressured while portraying the biggest difference between the 2-year and the 10-year bond coupons since the year 2000, which in turn highlighted the rush towards risk-safety. It should be noted that the S&P 500 Futures rise 0.8% intraday while the US 10-year Treasury yields rise 2.0 basis points (bps) to 2.80% at the latest.
Looking forward, headlines surrounding the US and China talks will join the Durable Goods Orders for June, expected -0.4% compared to 0.8% prior, to entertain traders. However, major attention will be given to Fed’s verdict and Chairman Jerome Powell’s press conference.
Also read: S&P 500 Futures, yields rebound as hints of Biden-Xi talks trigger cautious optimism ahead of Fed
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.