Asian equities exhibited a decline, while European and Indian markets demonstrated resilience, as investors exercised caution ahead of the highly anticipated US consumer price index (CPI) report and the Federal Reserve’s policy decision. This cautious sentiment permeated the markets, as investors sought to navigate the uncertainty surrounding the upcoming US CPI report and the Federal Reserve’s decision, both of which have the potential to significantly impact global economic trends.
Hong Kong’s benchmark index, the Hang Seng, experienced a notable decline of over 1%, driven primarily by the automotive sector’s weakness, as investors awaited the European Union’s tariff decision. Japan’s equity market also followed suit, with investors adopting a wait-and-see approach ahead of the critical US economic data. On the other hand, India’s benchmarks surged toward new record highs, buoyed by optimism surrounding the country’s economic growth prospects.
Conversely, European equities displayed a positive trend, with the Euro Stoxx 50 futures advancing 0.3%. This upward momentum was driven by expectations of a robust economic recovery in the region, despite the ongoing geopolitical tensions. US equity futures remained relatively stable, following the S&P 500’s recent record high, as investors digested the implications of the upcoming US CPI report and the Federal Reserve’s policy decision.
The $39 billion Treasury auction witnessed robust demand, resulting in decreased yields. This strong demand for US government debt securities underscored the ongoing investor appetite for safe-haven assets, amid the prevailing uncertainty in the global economic landscape. Market participants exercised restraint, awaiting the critical US economic data and the Federal Reserve’s policy direction, which may influence the global economic landscape and shape investor sentiment in the days to come