- In a cautious start to the week, Asian shares dipped while major currencies gained against the dollar, following fresh weakness on Wall Street and a forceful message to the world from China's communist party conference.
- Stocks fell in Japan, Australia, and Hong Kong, with technology companies leading the declines. Contracts for the S&P 500 and Nasdaq 100 surged after falling on Friday as treasury yields rose as year-ahead inflation estimates grew. At the start of the Asian trading session, US rates dipped marginally.
- The dollar fell versus its group of ten competitors, bringing some relief to currency markets. Traders continued on the lookout for future intervention to bolster the yen, which is nearing a 32-year low and approaching the critical 150 level versus the greenback. The pound rose on hopes that the UK might reverse more of its unfunded tax cuts.
- The outlook for consumer prices in the United States continues to stoke speculation that the Federal Reserve will raise interest rates at its next two sessions, further hurting global growth.
- Investors must grapple with news from Beijing, where China’s President Xi stated that China's global power has strengthened while warning of severe storms ahead. There was little evidence of a pause in the Covid-zero campaign or the housing market restrictions that are dragging on the economy. Xi also stated that China would succeed in its quest to develop strategically essential technology in the face of rising tensions with the United States.
