- Asia's stocks struggled to get traction, and US share futures wavered as investors worried that global central banks will keep boosting rates until inflation is under control, raising the possibility of a recession.
- Equities rose slightly in Japan but fell in Hong Kong and Australia. The holiday in Sydney and South Korea, as well as the week-long suspension of Chinese markets for Golden Week, may dampen trading in Asia.
- When OPEC meets this week, it may consider cutting production by more than 1 mln BPD in order to restore plummeting prices. Commodity currencies rose. These developments raise the likelihood of higher inflation, prompting central banks to take more aggressive policy action.
- In a so-called bull-steepening, shorter treasury yields fell more than longer ones, with the yield on a two-year note hovering around 4.2% and the 10-yr hovering around 3.8%. The dollar dropped marginally.
- The cautious start to the week comes as US stocks lost their third straight quarter for the first time since 2009. Since the Federal Reserve delivered its third big hike last month, risk assets have been in a tumble, with officials frequently warning of more pain to come.
