- Equities mildly rallied towards the end of New York trading as investors try to evaluate the impact of looming Fed hike later this week and the positive sentiment has spilled?into Asia open. But this still feels like a relief rally and some jitteriness remains as the market waits for the expected 75bp hike and press conference / dot plot for future guidance.
- S&P & Nasdaq closed 0.69% and 0.77% higher respectively. MSCI Inc’s Asia-Pacific equity index added 0.60% this morning, the first day of gains in six sessions, led by tech stocks in Hong Kong.
- 2y and 10y Govvy yields moved 7bp and 5bp higher respectively, as 75bp hike looks like a certainty now with an outside chance of 1% hike. This curve inversion is disconcerting as 2s10s hovers around multi-decade lows, usually a potent indicator of looming recession.
