Post by: PocketOption on May 06, 2022, 05:11 am
Asian equities trade sideways ahead of the FOMC
New York markets had another choppy, but ultimately directionless session overnight. The main indexes crawled to a positive close after the US 10-year yield slid back below 3.0%, having climbed above it earlier in the session. The S&P 500 rose 0.48%, the Nasdaq rose 0.22%, and the Dow Jones finished just 0.17% higher. In Asia, futures on all three have added between 0.10% and 0.15% in subdued trading.
A raft of holidays across Asia continues to mute volatility and volumes. Japan, Mainland China, Malaysia, Indonesia, and Thailand are all closed. South Korea's Kospi has edged 0.23% lower as markets continue to process multi-year highs in inflation and a China slowdown.
Singapore is down 0.10%, with Taipei climbing 0.25%, and Manila falling by 0.28%. Australian markets are equally quiet, although decent data today keeps the faster RBA rate hike story alive, weighing on sentiment, as are ever-tightening covid-zero restrictions in China. The All Ordinaries has fallen by 0.25%, while the ASX 200 has eased 0.05% lower.
European markets are likely to start slowly as well, with the FOMC the one ring to rule them all. Continuing chatter surrounding an EU embargo on n oil, and the geopolitical situation in the East will keep recession fears front and centre, limiting gains ahead of the FOMC announcement.
Source: Asian markets on hold with Fed on deck (https://www.marketpulse.com/20220504/asian-markets-on-hold-with-fed-on-deck/)