Asian shares braced for China data, Fed speakers

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Key Points

Early action was sluggish following a report on Friday showed U.S. consumer sentiment slumped to a six-month low in May and long-term inflation expectations jumped to the highest since 2011, boosting the U.S. dollar and Treasury yields...

Asian stocks started cautiously on Monday as investors braced for a China policy rate decision and economic data this week, while awaiting a host of U.S. Federal Reserve officials to speak to vindicate market pricing of rate cuts this year..

A big year-on-year improvement shouldnt surprise given it is measured against a stagnant economy that was in lockdown, said Chris Weston, head of research at Pepperstone.However, with Chinas data throwing up a few concerns of late weve seen poor import, PPI, and loan data Chinas growth is very much at the heart of market moves, said Weston..

Markets are still seeing this is the peak for Fed funds rates and pricing in 70 basis points in cuts by the end of this year, after the CPI and PPI data last week supported the case of Fed pausing given the slowing inflation...

Joseph Capurso, head of International Economics at Commonwealth Bank of Australia, believes the persistence of U.S. inflation would take out the pricing for near term cuts to the Funds rate, and contribute to a recovery in the dollar in coming months..

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