Asian equities dragged lower on sour mood in Wall Street yesterday
The Hang Seng is down 2.0% and the Shanghai Composite is down 1.6% in a sea of red for Asian equities today. The softer risk mood is also reflected in US futures still, with S&P 500 futures down 0.3% and Nasdaq futures down 0.5%.
It is looking to be a hiccup for equities to wrap up January trading, despite the Fed reaffirming that they will stick with their current policy stance for quite some time yet.
The bond market may be reacting to some hints of risk aversion but 10-year Treasury yields slipping under 1% also tells the story that the Fed put is well and truly alive.
I would argue any further retracement here still represents a "healthy" correction in the big picture and dip buyers are surely waiting in the wings to step back in.
The whole GameStop saga is also bringing some unwanted attention to the stock market in general and that perhaps is messing with investor appetite for now.
