Comments on 'excessive optimism' in global markets

The global market agenda is dominated by warnings of "excessive optimism" from some investors following the release of producer inflation data in the US, as well as the Biden-Xi meeting.

Wall Street indices, which finished Wednesday with limited gains, are falling in futures trading.

The MSCI Asia Pacific Index showed a negative performance, led by shares of Chinese companies trading in Hong Kong, following data indicating that housing prices in China have recorded their fastest decline since 2015.

Investors are also pricing in concerns that Biden's use of the term "dictator" for Xi might cast a shadow over the talks.

IG Australia Market Analyst Tony Sycamore stated that Biden's words for Xi were "not a surprise" but were "harsh," adding, "Keep in mind that US stock markets are approaching overbought levels, so it looks like we have the potential for a pullback."

The US 2-year Treasury yield, which closed above 4.91 percent with a rise of nearly 8 basis points on Wednesday, retreated slightly this morning.

Similarly, the US 10-year Treasury yield fell to the threshold of 4.50 percent this morning after rising 8 basis points on Wednesday.

News Source: 12punto