Asian Equities Steady, U.S. Futures Retreats while Crude Oil Extends Gains

Asian equities and crude oil  inched up on Monday as investors monitored diplomatic efforts to bring an end to Russia’s almost month-old war in Ukraine.

The CSI300, HSI and TOPIX inched up by 0.26%, 0.23% and 0.54% respectively while KOSPI marginally down by 0.26%. The MSICI Asian broad market index ex Japan is trading higher by 0.25%.

Futures contracts of S&P500 and Nasdaq retreated pointing towards a pause in gain of global equities after their best weekly performance sine 2020.

Russia continues its invasion in Ukraine. Turkey said Moscow and Kyiv are moving closer in talks aiming to achieve a cease-fire.

U.S. treasuries under pressure and signaling risks from the war and rising U.S. interest rates. The bond market continues to flash caution about risks from the war and rising U.S. interest rates. The Treasury yield curve is flattening, and portions are inverted, which for some is an indicator of a looming economic slowdown.

A speech by the Federal Reserve Chair Jerome Powell is awaited later today, where markets expects the Fed to lift its target rate to around 2% by the end of this year.

Crude oil trading on a positive note with WTI trading at $107.61 per barrel while Brent is trading at $110.16 per barrel.