The MSCI Asia Pacific Index slid about 0.3% in mixed trading that saw Chinese and Japanese stocks swing between gains and losses while Australian shares were more firmly lower. Contracts for the S&P 500 and the Nasdaq 100 extended their losses, indicating further downward pressure for US stocks after declines last week.
While current consensus is quite negative on the possibility of the US hitting a recession, the pricing in the Treasury market “has evolved in a way that implies less recession risk than it did a few months ago”, said Jan Hatzius, Goldman Sachs chief economist, on Bloomberg Television.
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