- Asian stocks have given up much of their gains as traders assess the possibility that US inflation data due Wednesday will cause volatility in global markets.
- A measure of Asia Pacific equities and US futures were flat, indicating that investors were holding off on taking new positions ahead of a data point considered critical for the next Federal Reserve policy meeting. Treasury two-year yields remained above 4%, while the dollar maintained its loss from Tuesday.
- On Tuesday, Fed officials expressed varying views on further policy increases, with Fed's Goolsbee arguing that the central bank should exercise prudence and patience. Fed's Williams said officials must do more to combat inflation.
- Swap contracts are pricing in roughly three-quarters of a quarter-point Fed hike next month. Traders predict that US interest rates will peak around 5% before being cut by at least 50 basis points by year's end.
