Asian equities could trade lower as global stocks underperformed as growth concerns were exacerbated after data showed weak consumer spending dynamics in May and stoked recession worries. Also, it is worth noting that the month/quarter-end trade weighted on price action across assets. With technical factors out of the way, risk assets could see some liquidity and price discovery normalization in the coming days.
For the session ahead, traders will be eying inflation print in the Eurozone before the US ISM Manufacturing PMI marks the final tier 1 data point of the week. Desks are expecting an improvement in Chinese Caixin Manufacturing PMI as the lockdown eased and the supply chain showed positive signs in recent weeks. Now traders will be positioning for a new quarter ahead next week U.S. Nonfarm Payrolls and earning season are about to kick off in the US.
