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Asia Provides Soft Start To The Week

EQUITIES

The combination of U.S. Democratic Senator Manchin delivering a roadblock for President Biden’s Build Back Better scheme & increased omicron worry (centring on Europe & the UK) weighed on risk appetite during Asia-Pac hours. This pushed all of the major regional equity indices lower, adding to the burden of a negative lead from Wall St. The Nikkei 225 was the weakest index among the major regional benchmarks, shedding ~2%. Meanwhile, U.S. e-mini futures lost ~0.8-1.0%, trading below their respective Friday troughs in the process. A 5bp cut in the latest PBoC 1-Year LPR fixing failed to boost risk appetite.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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