Asian markets and US equity futures made a steady start on Monday after a wild week. Kyle Rodda said, "The markets are far from being out of the woods yet." Investors now watch for a December rate hike after a strong jobs report showed employers added 165,000 jobs last month.
HONG KONG, Nov 9 (Reuters) - Asian markets and US equity futures made a steady start on Monday, wobbling into positive territory after a wild week where doubts about demand for computer chips sent tech-heavy markets in Asia into some of their steepest falls in years.
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US stock futures, the S&P 500 e-minis , were a touch higher. On Friday, Wall Street equities rallied to end a chaotic week after heavy AI-related selling, helping to calm some nerves.
Global stocks had already been on shaky ground in recent weeks with the AI trade crumbling in the face of rising interest rates, until the US midterm results unleashed deeper worries about increased regulation of AI and data centres.
"The markets are far from being out of the woods yet," said Kyle Rodda, senior financial market analyst at Capital.com.
"Following last week's midterm elections that have led to increased regulatory risk and an overall underwhelming earnings season that's seen Magnificent Seven companies miss earnings expectations, the momentum remains skewed to the downside," he added.
Elsewhere, Brent crude fell to $97.49 per barrel after US President Donald Trump on Sunday said he was highly unlikely to order fresh attacks on Iran as long as talks to end the conflict progress.
FED HIKE BETS BUILD
A blowout jobs report on Friday showed US employers added 165,000 jobs last month, more than twice economists' expectations and bolstering the case for the US Federal Reserve to raise interest rates in December. A US CPI reading due on Tuesday could further cement expectations for a hike next month.
Market expectations for an increase of at least 25 basis points at the central bank's December meeting moved up to nearly 80% in the wake of the report, according to the CME FedWatch Tool.
Comments from officials also supported views for a rate hike, with New York Fed President John Williams saying US economic growth has remained remarkably resilient in the face of successive shocks but inflation is too high and it is essential to bring it back to 2%.
That helped the greenback to notch its biggest single-day gain in five months. The dollar index , which tracks the greenback against a basket of currencies of other major trading partners, last traded at 102.2.
The European single currency was little changed at $1.1148. The yen was 0.2% stronger at 158.215.
Bitcoin fell by more than 2% to $73,708, while ether fell about 5% to $2,223, touching the lowest levels in over two months as investors fretted a Democratic-controlled US Congress will toughen regulation on cryptocurrencies.