From Nasdaq:

Asian stock stumbled due to the court-ordered liquidation of China Evergrande. Geopolitical tensions lifted oil prices. U.S. Treasury yields remain under pressure; the Treasury Department said it would need to borrow less than previous estimates. Hong Kong’s Hang Seng index dropped 1.7%. China stocks fell 0.69% and were on course for a near 4% drop for the month.

China and Hong Kong stocks dragged MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.4%. Although the European bourses are expected to open much higher, the S&P 500 notched yet another record high close. The Federal Reserve’s policy meeting will likely be the main event of the week; investors will also watch for European inflation data, Bank of England policy meetings, and the U.S. employment report this week.

Overnight, the S&P 500 notched yet another record high close, while the Federal Reserve’s policy meeting and Chair Jerome Powell’s commentary will likely be the main event of the week. The Fed in December surprised the market with its dovish tilt, projecting 75 basis points of interest rate cuts in 2024, sparking an end-of-year risk rally, and traders pricing in easing as early as March. But since then, a slate of strong economic data, sticky inflation, and pushback from central bankers have led markets to significantly dial back their expectations. Markets now expect 47% chance of a Fed rate cut in March, down from 88% a month earlier.

In the currency market, the dollar index was steady at 103.51, while the yield on 10-year Treasury notes extended its slide and was down 4 basis points to 4.051%. The euro last bought $1.0823, near a seven-week low of $1.07955 it touched on Monday. In the oil market, investor jitters on rising tensions in the Middle East have kept risk sentiment in check and fueled supply concerns.

The United States vowed to take “all necessary actions” to defend American forces after a drone attack killed three U.S. troops in Jordan. U.S. crude rose 0.6% to $77.24 per barrel, and Brent was at $82.78, up 0.46% on the day.



Read more: GLOBAL MARKETS-China property sector worries dent Asian shares; Fed in focus