Market Live: Sgx Nifty Indicates Flat to Positive Start for Indian Indices

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Indian indices could get off to a flat to positive start on Wednesday. The indices posted losses on Tuesday, following the weakness of Asian peers. Wall Street indices tumbled as US Treasury yields rose sharply during the overnight session as investors gauged the outlook for higher inflation following a phased ban on imports of Russian oil by the European Union which took crude prices to new heights. The European Union has agreed in principle to reduce oil imports from Russia by 90%. Equities in Asia faltered as fears that rate hikes could induce a recession left investors guessing about the outlook for the economy. Shares rose in Japan and Australia, while they fell in Hong Kong, Shanghai and South Korea.

Jun 01 2022, 07:30:33 IST

Asian stocks falter as bonds slip on inflation concerns

Equities in Asia were flat on Wednesday and US futures rose, while bond yields extended their advance amid debate over the need for aggressive monetary tightening to fight inflation.

Stocks soared in Japan, but a pullback in Chinese tech stocks after U.S.-listed stocks posted their first monthly gain since October weighed on Hong Kong and China. The S&P 500 and Nasdaq 100 contracts rose, indicating that US stocks could stabilize after the benchmarks pulled back on Tuesday.

Treasuries extended their decline, pushing 10-year yields closer to 2.9% as traders increased bets on Federal Reserve interest rate hikes. Swaps show traders almost fully priced in two half-point rate hikes in June and July, with even a chance of a third such hike in September. Eurozone consumer prices jumped 8.1% to a record high on a year earlier in May, spooking investors further.

Oil hit close to $115 a barrel as investors weighed the future of the OPEC+ unit, just as the group’s ministers prepare to meet on Thursday to discuss its supply policy for July. Crude rose after rising around 10% in May, stoking inflation concerns.

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