Asian Market Wrap:
Asian Market Wrap: 10-year Treasury yields are down -2.4 bp at 1.556%, JGB rates fell back -1.3 bp to 0.244%, The 2-10 year part of the curve in the U.S. remains inverted and the 30-year fell below the 2% mark, which shows that global recession fears are intensifying, which is spooking investors and keeping pressure on stock markets. The Hang Seng, which has been looking oversold recently managed to claw back early losses and is currently up 0.07%, but Topix and Nikkei are down -1.1% and -1.3% respectively. CSO 300 and Shanghai Comp are down -0.3% and -0.4% after the PBOC added liquidity, although there is no sign that the bank is planning a substantial stimulus program despite slowing growth. The ASX underperformed and lost -2.8% as fears of a U.S. recession, coupled with a weaker China economy hit sentiment. Bond markets have been gloomy about the outlook for a while, but so far stocks took solace in the prospect of further central bank easing and valuations remained high, despite growing risks. This it seems is no longer the case and unless geopolitical tensions are resolved and governments focus on stimulus programs volatility and further pressure on stock markets are likely. For now U.S. stock futures are slightly higher and signalling stabilisation after yesterday's sell off on Wall Street. The front end WTI future meanwhile is trading at just under USD 55 per barrel.