Asian equities pared losses moderately as market sentiment remains fragile over economic growth concerns.
Shares in Mainland China closed higher while Hong Kong, Japan, Thailand and South Korea dropped on higher note. The MSCI Asian Index ex Japan dropped by 1.66%.
U.S. futures contracts the Nasdaq 100 rose 1.4% while S&P500 were up by 1%. The dollar and treasuries edged higher signaled flock towards safe heaven assets.
Europe’s equity benchmark rebounded from a two-month low.
“For now, investors need to be prepared for continued volatility,” Solita Marcelli, Americas chief investment officer at UBS Global Wealth Management, wrote in a note. She added “sentiment is bearish” but not capitulating.
Attention is now towards U.S. April consumer-price index which is to be released on Wednesday. The figure is expected to reach a new peak which could increased Fed’ chances of 75 basis-point rate hike rather then a 50 basis-point hike.
Fed Bank of Atlanta President Raphael Bostic said he favors continuing to raise rates by half-point moves rather than anything larger. He said the odds for a 75-basis-point hike are low but added he’s taking nothing off the table.
Crude oil declined with the WTI trading around $101 a barrel while the Brent trading around $104 a barrel.
