Asian Stock Market: Mix on cautious market mood, DXY flat ahead of Fed minutes, oil slips
- Asian equities are trading mixed as investors have turned cautious on slippage in US indices futures.
- The renewed recession fears have put the DXY on the tenterhooks.
- On the oil front, investors are shifting their focus on prolonged supply worries.
Markets in the Asian domain are displaying mixed responses to falling S&P 500 futures in the Asian session. Friday’s gains in Wall Street were expected to infuse fresh blood in the Asian equities, however, the morning downside in the US indices futures has turned the asst cautious.
At the press time, Japan’s Nikkei225 has added 0.58%, Nifty50 and China A50 are trading flat, while Hang Seng slipped 0.60%.
Meanwhile, the US dollar index (DXY) is trading flat after a firmer correction on Friday. Last week, the asset witnessed a steep fall on the weekend as the downbeat US Institute of Supply Management (ISM) triggered recession fears. The economic data remained vulnerable on all fronts: Manufacturing PMI, Employment Index, and New Orders Index. This has also trimmed the odds of a mega rate hike announcement by the Federal Reserve (Fed).
On Tuesday, the Federal Open Market Committee (FOMC) will release June monetary policy minutes, which will dictate the detailed ideology behind the announcement of 75 basis points (bps) rate hikes.
On the oil front, the black gold is displaying subdued performance in the Asian session. However, the fossil fuels rebounded on Friday as investors shifted their focus on the supply worries. Oil remain will remain tight as the Western leaders have prohibited Russian oil imports. And, out of the OPEC cartel, Saudi Arabia and UAE have the infrastructure to accelerate oil production. However, they are already operating at full capacity.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
