- Asian equities dipped, as the dollar rose as monetary policy tightened to combat excessive inflation.
- The MSCI Asian share gauge fell less than 0.5%, with Japan neutral and Hong Kong down. Alibaba Group contributed to a drop in China tech following reports that it is under investigation for data theft.
- Investors are waiting for Chinese data to see how the country's economy is faring amid property-sector and Covid woes. The country avoided pumping funds into the banking system and kept borrowing costs stable.
- The S&P 500 and Nasdaq 100 futures gained modestly after the US stock market recovered from Thursday's lows to close with a tiny loss.
- Traders are debating how aggressive the Fed should be in order to tame runaway inflation. Bets on a 1ppt rate hike in July have been reduced after the latest Fed statement pointed to 75 bps.
- Treasuries rose slightly, while 2-yr rates remained higher than the 10-yr rate. The bond curve inversion is regarded as a recession indicator, however, it has been moderated slightly.
- Growth concerns are weighing on commodities ranging from metals to crude oil, which is expected to close the week below $100 a barrel for the first time since early April.
