Consolidation After Strong Start To 2023

A more cautious tone in the equity space has emerged as we have progressed through today's session. US equity futures have spent most of the session in the red, although we are away from worst levels. The active Eminis contract holding above 3900 for now (~-0.30%), while Nasdaq futures are slightly weaker at this stage.

• Weakness in regional equity markets have persisted this afternoon, although losses have been large. Some consolidation may be taking place, following the very strong start to the year for regional bourses (+3.8% for the MSCI Asia Pacific Index YTD).
• The HSI is down 0.34% at this stage, while the CSI 300 and Shanghai Composite are down modestly. The Kospi and Taiex and both close to flat.
• Indonesian stocks are underperforming, last down 1.5%, and off by more than 10% from September highs last year.
• Japan equities are performing better, up 0.70% for the Nikkei, although Japan markets were closed yesterday, so this may reflect some catch up.