- Stocks were steady on Tuesday as traders weighed inflation risks and kept an eye on the first face-to-face virtual summit between Biden and China’s Pres. Xi. Treasury yields and the dollar both lost ground.
- Japan's stock market rose modestly, while Hong Kong and China's markets fluctuated. After the S&P 500 and Nasdaq 100 ended flat, equity futures in the US and Europe edged higher.
- After resuming trading in Hong Kong, units of troubled Chinese developer Kaisa Group Holdings Ltd. performed mixed. At least some creditors of Kaisa Group have not received bond interest that was due last week.
- The 10-year treasury yield in the United States was around 1.60% Bonds fell overnight on speculation that the Federal Reserve may need to tighten policy more quickly to combat price pressures. Stronger-than-expected manufacturing data from New York bolstered the case for an earlier interest-rate hike.
- The US and China are attempting to stabilise their relationship while dismissing the possibility of major breakthroughs. Signs of improved bilateral ties may boost sentiment, but the effect may be fleeting given broader concerns about inflation and the fallout from Xi's "common prosperity" drive to combat inequality.
