- US equity futures edged higher while Asian stocks struggled for traction ahead of a Federal Reserve meeting expected to deliver a significant interest-rate hike to combat inflation.
- An Asia-Pacific stock index fluctuated, with Chinese technology stocks among the gainers and Japan in the red. Contracts for the S&P 500 and the Nasdaq 100 rose by less than 1%. Wall Street continued its longest losing streak since January on Tuesday.
- Treasury yields have levelled off following their worst drop in decades. Two-year yields fell after reaching a high not seen since 2007, and the 10-year yield fell from near 3.5%.
- The Fed is expected to raise interest rates by 75bps on Wednesday, the largest increase since 1994. Parts of the US yield curve remain inverted, indicating fears that tight monetary policy will cause an economic downturn.
- The dollar fell, while the Japanese yen rose from a 24-year low. The offshore yuan rose after China's central bank decided not to cut a key policy rate. Bitcoin has settled at around $22,000. Oil is trading for less than $120 per barrel.
