After a negative close on Wall Street overnight, the Asian stocks are off to a rough start on Wednesday, taking cues from a 0.20% drop in the S&P 500 futures.

Investors digest the latest discouraging news that the International Monetary Fund (IMF) cut its global growth forecast to 5.9% from 6% this year. The chips shortage and energy crunch continue to pose downside risks to the economic recovery worldwide.

Markets also remain cautious ahead of the critical US inflation data release, which will be followed by the FOMC minutes. The events are likely to seal in a November Fed’s tapering.

On the other side of the globe, China continues to battle with the indebted property sector crisis while the country’s regulators ramp up the crackdown on private sector industries.

On a bright note, the US debt limit increase bill gets enough support in the House of Representatives to win the final passage. Although the markets pay a little heed to it, as the sentiment remains at the mercy of the Fed’s tapering speculations and global growth concerns.

At the time of writing, S&P 500 futures drop 0.19% on the day to trade at 4,342, the Nikkei 225 index erases losses to recapture 28,000 and China stocks remain marginally lower so far.

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