Investors around the world will be eyeing the FOMC meeting this week to bring clarity on the interest rate timeline as well as the outlook for tapering. While the focus this year has been on the Fed’s plan to cut bond purchases, its outlook on interest rates is likely to be the new trigger to move markets around the world.
Asian stocks await weakening news from US Fed
Asian stocks eased and the dollar remained firm on Monday from a week before less than a dozen central bank meetings, which the Federal Reserve highlighted, likely to take another step toward tapering. Is.
The holidays in Japan, China and South Korea are off to a slim start, and politics adds additional uncertainty with elections in Canada and Germany booking the week ahead.
The fortunes of Chinese property giant Evergrande, and its $300 billion in liabilities, are also in balance with bond interest payments due Thursday.
Concerns about the health of China’s economy and Beijing’s crackdown on tech firms continue to haunt the sector, with stocks in Hong Kong particularly hit hard last week.
Early Monday, MSCI’s broadest index of Asia-Pacific shares outside Japan dropped another 0.2% after falling 2.5% last week.
Wall Street shares fell sharply on Friday
US stocks closed sharply lower in a broad sell-off on Friday, fueled by strong economic data, concerns over corporate tax hikes, the delta COVID version, and potential changes to the Federal Reserve’s timeline for asset purchases.
All three major US stock indexes lost ground, with the Nasdaq Composite Index falling the biggest as rising US Treasury yields put pressure on market-leading growth stocks.
They also posted weekly losses, marking the S&P index’s biggest two-week drop since February.
The Dow Jones Industrial Average fell 168.15 points, or 0.48%, to 34,583.17, the S&P 500 fell 41.06 points, or 0.92%, to 4,432.69 and the Nasdaq Composite fell 137.96 points, or 0.91%, to 15,043.97.
The S&P 500 ended the session below its 50-day moving average, which has proved to be a strong support level in recent history.
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