The recovery in risk appetite observed on Tuesday has been stifled following a mounting realization that the U.S.

Federal Reserve will likely maintain elevated interest rates.

The sentiment was reinforced by remarks from Richmond Fed President Thomas Barkin, increasing anticipation that Fed Chair Jerome Powell will further bolster a hawkish outlook during his address at the central bank symposium in Jackson Hole on Friday.

Wall Street closed with mixed results, with U.S.

yields stabilizing around decade highs, a resurgence in U.S.

dollar, a slight drop in oil prices, and metals making gains.

Asian markets are projected to begin on a sour note with EM ETFs down by 0.2%.

The relative lack of critical economic data in the region leaves traders contemplating the mounting apprehensions over China’s economy and its basic economic data reporting.

U.S.

yields remained substantially high with the 2-year up by 4 basis-points to 5.037%, while the 10-year slipped by 1-bp to 4.328%, and the 30-year surged 48 bps to 4.411%.

Down by 0.51% and 0.28% respectively, Dow and S&P ended the day in negative territory as bank stocks weighed heavily, while Nasdaq was up by 0.06%.

Oil prices fell on concerns about China’s demand; Brent dipped by 0.50% and WTI was down 0.48%.

The U.S.

dollar climbed 0.25% to a two-month high supported by yields, while the possibility of Japan’s interference in FX kept JPY up by 0.25%.