Asian equities could trade choppy as the global appetite for risk in the short-term is still blurry, with hawkish central banks weighing on sentiment. US equities finished the day green, although the Russell was the laggard in the red while growth outperformed value.
On the geopolitical front, China’s Foreign Minister says US Pelosi’s planned Taiwan trip is ‘malicious provocation’. The situation between Ukraine and Russia stays fluid, with markets now only looking for a major breakthrough to adjust current pricing. The US congress voted to ban Russian oil imports and revoke Russia’s trade status. At the same time, the Kremlin declared Russia would respond to the latest US sanctions and that the US sending weapons to Ukraine is not contributing to the success of peace talks. On the macro front, Oil prices’ continued collapse can help ease inflationary/recessionary concerns as Brent fell beneath USD 100/bbl for the first time since March 17th. Participants are now on the lookout for US CPI next week. Also could weigh on the price action is the upcoming US earnings season that is arriving next week with the prospect of unwelcome news due with Bank shares taking a beating as global sanctions against Russia for war in Ukraine.
