SYDNEY - Asian stocks traded in a narrow range on Tuesday, as investors pondered fresh political uncertainty in European markets after right-wing gains in elections and a snap poll in France revived concerns about the cohesion of the bloc.
Elsewhere, markets gave a muted reaction to Apple's long-awaited AI strategy, which integrates "Apple Intelligence" technology across a suite of apps. The iPhone maker's shares were down 0.3% in after hours trade, having slipped 1.9% in normal hours.The market has, so far, proven remarkably resilient to the jump in U.S. yields that followed Friday's jobs report and the pull back in expectations for Federal Reserve rate cuts.
Futures imply 37 basis points of Fed easing for this year, compared to 50 bps before the jobs report. "We think the leadership would prefer a two-cut baseline to retain flexibility, but a one-cut baseline is a possible risk, especially if core CPI surprises to the upside on Wednesday."In currency markets, the euro steadied around $1.0766, after hitting a one-month low overnight at $1.0733. It has lost about 1.1% in the past two sessions, undermined by the U.S. jobs reports and political uncertainty.
Markets are also awaiting monthly oil supply and demand data from the U.S. Energy Information Administration and OPEC on Tuesday, and the International Energy Agency on Wednesday. Trump Demands Biden Remove Ad of Him Calling Dead Soldiers ‘Suckers’ and ‘Losers’