On Tuesday, the Indian indices can see a negative start from the flat. Investors will continue to monitor peace talks between Russia and Ukraine. Crude oil prices have remained under control over the past few sessions, reducing the chances of a rise in inflation. However, the Monetary Policy Committee of the US Federal Reserve will begin its two-day meeting to decide on interest rate hikes. The result will be closely watched by investors. Investors are also likely to be stunned by the resurgence of Covid cases in China. On Monday, the US market mostly closed lower on the expectation of a rise in prices. In Asia, Japan, Australia, South Korea, Hong Kong and Shanghai were all down.
Stocks fall as China Tech slides; Treasury collapse
Stocks and sovereign bonds remained under pressure on Tuesday as Russia’s war in Ukraine and the risk of aggressive US monetary-policy tightening to quell inflation.
An Asia-Pacific equity index fell for a third session, hurt by a deep fall in Chinese technology stocks. Export-dependent Japan bucked the trend with marginal gains amid a weaker yen. US contracts fell after Wall Street shares fell, leaving the Nasdaq 100 in a bear market.
China injected more money into the financial system and set a relatively weak reference rate for the yuan, which has been seeking to support the economy amid the Covid lockdown. But officials refrained from cutting the policy rate.
Australian and New Zealand yields jumped and Treasuries fell ahead of the Federal Reserve’s expected interest rate liftoff on Wednesday. The 10-year US yields were at their highest level since 2019. Dollar rose.
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