A positive start can be seen in the Indian indices on Wednesday. Markets rose on Tuesday after tracking gains in US and Asian indices. However, Wall Street indices fell on Wednesday as mixed corporate earnings, the Covid situation in China and the prospect of an aggressive rate hike by the US Fed, suggested a deteriorating economic outlook. US equity futures trembled after the S&P 500 slipped to a six-week low and the technology-heavy Nasdaq 100 fell to levels last seen in 2021. Oil prices also rose after China’s central bank backed its economy. Asian investors followed their US counterparts as the fall in Wall Street eroded risk appetite. Shares in Japan, South Korea and Australia fell in early trade, while stocks in Hong Kong were muted and advanced in Shanghai.
Shares fall as economic growth outlook
Stocks fell on Wednesday as mixed corporate earnings, China’s covid struggle and the prospect of an aggressive Federal Reserve monetary tightening all pointed to a worsening economic outlook.
Equities declined in Japan, Australia and South Korea. US equity futures tumbled to six-week lows of the S&P 500 and the technology-heavy Nasdaq 100 after being last seen in 2021.
Risk aversion strengthened sovereign bonds in Australia and New Zealand. Treasuries led a somewhat sharp rally from Tuesday, led by shorter maturities. The one-dollar gauge was around the highest mark in nearly two years.
The euro touched its weakest level since 2017 versus the greenback, amid concerns that Moscow could block gas flows to Europe, hurting the region’s growth in the ongoing fallout from Russia’s invasion of Ukraine.
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