- Stocks in Asia traded between losses and gains as investors assessed recent developments in China and a speech by Fed's Powell later Wednesday.
- Hong Kong's benchmark equities opened lower, then surged higher before falling back in the first hour of trading. For mainland stocks, the picture was similar.
- Australian shares recovered early losses as inflation eased, while Japan's market remained negative following data showing a sharper-than-expected drop in industrial production.
- US futures edged higher after Wall Street closed and ahead of Fed Powell's speech on the economy and labour market.
- Treasuries were little changed, while the dollar index fell. The offshore yuan fell further in November as China's factory and service activity contracted further as record Covid cases prompted widespread movement curbs.
- Despite the turmoil, a global stock index was on track for a second monthly gain, bringing its year-to-date loss to 18%. Bonds were also expected to gain monthly, with losses in 2022 on par with equities.
- Stocks and bonds moved in lockstep this week, bringing their correlation to its highest level since 2012, putting pressure on investors looking to hedge risk by dividing their portfolios between the two asset classes.
