Asian equities started choppy following a negative day on Wall Street as Nasdaq closed in a technical bear market for the first time since March 2020. Weighting on global risk appetite was China stocks after being sold hard on the latest uptick in COVID and new lockdowns and delisting sorrows. In addition to fresh reports, Lanfang city has gone into lockdown. Also on the radar, traders were pushing US Treasury Yields higher due to pre-positioning for the FOMC meeting on Wednesday.
Latest COVID worries with China COVID lockdowns have been putting pressure on the economic activity expectations and to the Oil market. Energy market participants could continue to unwind their hedges if China’s cases increase in the coming days and if any improvement in peace talks between Russia and Ukraine gains traction. Ukrainian President Zelensky says negotiations with Russia will continue on Tuesday. On the macro front, participants will watch Chinese readings with Chinese retail sales data. The latest round of PBoC Medium-Term Lending Facility operations will provide the focal point amid increasing economic growth revision to the downside and loose monetary policy expectations.
