Asian shares dropped and Treasury yields held firm on Tuesday, as a global energy crunch fuelled inflation fears and concerns about Evergrande’s debt problems intensified, clouding investor sentiment before the U.S. corporate earnings season.
European markets appeared set for a lower open with pan-regional Euro Stoxx 50 futures down 0.73% and London’s FTSE futures falling 0.55%. U.S. stock futures, the S&P 500 e-minis, shed 0.33%.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.9%, while Chinese stocks also fell.
China’s blue-chip CSI300 index fell 1.52%, while the coal sub-index dropped 3.8% amid government efforts to urge firms to increase output.
In Hong Kong, the Hang Seng index fell 1.3%, dragged by tech giants.
Elswhere in Asia, Australian shares slipped 0.26% while Japan’s Nikkei stock index slid 0.79%.
Some analysts expect companies to report slowing growth due to supply-chain snags and rising prices. They warned that this could lead to a drop in U.S. stocks.
JPMorgan shares were down 2.1% and among the biggest drags on the S&P 500, which lost 0.69% to 4,361.19. The Dow Jones Industrial Average fell 0.72% while the Nasdaq Composite dropped 0.64%.
After U.S. data last week showed weaker jobs growth than expected in September, the focus now shifts to inflation and retail sales numbers this week.
Investors also expect the Federal Reserve to begin tightening policy by announcing a tapering of its massive bond-buying next month.
· Indian shares slip from record highs as IT firms drag ahead of earnings
Indian shares fell on Tuesday after hitting record highs in the previous session as IT stocks lost ground ahead of quarterly results, while weak global cues over inflation worries and an energy crunch also dampened sentiment.
The NSE Nifty 50 index was down 0.15% at 17,921.10, while the S&P BSE Sensex fell 0.17% to 60,033.69 by 0515 GMT. Both indexes had scaled record peaks in the previous session.
· Investors eye Airbus Q4 after flat September jet deliveries
· Thai hospitality and travel shares soar on reopening plans
Shares in Thailand's hotels and airlines jumped in Tuesday morning's trading, lifted by an announcement by its prime minister that more vaccinated tourists would be allowed to visit the country from November.
· European markets sharply lower as global sentiment worsens
European stocks slid into negative territory on Tuesday amid gloomy sentiment in global markets.
The pan-European Stoxx 600 dropped 1.1% in early trade, with basic resources shedding 1.8% to lead losses as all sectors and major bourses began the session in the red.
The negative start for Europe on Tuesday comes after a choppy period for global markets.
Investors are bracing for a slew of U.S. earnings, with major banks revealing third-quarter results this week; JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo and Citigroup are all due to report, starting Wednesday.
Reference: Reuters, CNBC
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