Asian equities are a tad lower in muted trading
Cautious sentiment prevails over equities in Asia with Japanese and Chinese stocks mostly a little lower on the day as profit-taking is likely the name of the game ahead of the FOMC meeting tomorrow. Trading ranges for most major indices are relatively narrow with investors having little direction to work with to start the new weeks so far.
The slightly softer tone is helping to keep the yen underpinned thus far with USD/JPY trading at 111.26 currently. Treasury yields are also helping slightly with that as 10-year yields are lower by 0.7 bps to 2.596% at the moment.
Looking towards European trading, I would expect equities to stay near flat levels to begin the morning; mirroring the sentiment seen in US equity futures. That shouldn't give risk sentiment much direction as traders will wait on Wall Street for more clues.
