June 27 (Reuters) – A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist.
Asian markets on Tuesday are set to open on the defensive, pressured by worries over inflation and ‘higher for longer’ interest rates globally more than fallout from the brief uprising by Russian mercenaries against the Kremlin.
Wall Street closed in the red on Monday – the Nasdaq shed more than 1% for the third trading day in four – and the U.S. yield curve inversion accelerated to near-historic levels.
But inflation and policy concerns are driving sentiment more than geopolitical fears. The increases in traditional ‘safe haven’ assets like gold, bonds, the yen, Swiss franc and U.S. dollar on Monday were small, in some cases negligible.
The Bank for International Settlements on Sunday called for more rate hikes, warning the world economy is at a crucial juncture in the fight against inflation. The International Monetary Fund’s Gita Gopinath said on Monday investors may be overly optimistic on the speed and cost of taming inflation.
With no major Asian economic indicators, policy decisions or policymaker speeches scheduled for Tuesday, investors will probably pick up from where U.S. markets left off on Monday.
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Source: www.reuters.com
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