Asia stocks in gloomy mood as Wall Street futures slip

Asia stocks in gloomy mood as Wall Street futures slip

"A series of rate hikes and hawkish communication came against a backdrop of plummeting Chinese and European activity, new plans for Russian energy bans and continued supply-side pressures," warned analysts at Barclays.







Reuters









May 09, 2022 / 06:08 AM IST





Asian markets got off to a shaky start on Monday as U.S. stock futures took an early skid on rate worries, while a tightening lockdown in Shanghai stoked concerns about global economic growth and possible recession.

"A series of rate hikes and hawkish communication came against a backdrop of plummeting Chinese and European activity, new plans for Russian energy bans and continued supply-side pressures," warned analysts at Barclays.

"This creates the gloomy prospect of persistent inflation forcing central banks to hike rates despite sharply slowing growth."

There was no let up in China's zero COVID policy with Shanghai tightening the city-wide COVID lockdown of 25 million residents.

S&P 500 stock futures led the way with a drop of 0.6%, while Nasdaq futures shed 0.7%. U.S. 10-year bond futures also lost 8 ticks.

Nikkei futures were trading at 26,745 compared to a cash close of 27,003 on Friday.

Investors were also tense ahead of the U.S. consumer