US equity futures fell after Treasury Secretary Bessent described recent declines as healthy corrections, while Asian stocks gained from positive Chinese consumption data. Oil prices rose on expectations of increased demand, and US Treasuries remained steady. Investors are closely monitoring US retail and manufacturing data scheduled for release, along with central bank meetings amid ongoing trade tensions.
US equity futures experienced a decline following Treasury Secretary Scott Bessent’s remarks, which downplayed the market downturn as a healthy correction. In contrast, Asian shares saw an increase due to positive consumption data from China. This situation led to a rise in oil prices, fueled by optimism that China’s demand, as the world’s leading oil importer, would continue to grow. Both the dollar and euro remained largely stable, while European stock futures indicated a steady market opening.
Bessent’s comments impacted US stock futures, as he expressed minimal concern regarding the recent market slump, which has erased substantial value amid ongoing changes in US economic policies. Meanwhile, Germany’s political landscape is under scrutiny, particularly with Chancellor-in-waiting Friedrich Merz’s spending plan, which awaits parliamentary approval this week.
Additionally, key US retail sales and manufacturing data are set for release on Monday. This data will provide further insights into the health of the US economy, particularly before the Federal Reserve’s policy decision scheduled for later this week. As Travis Spence from JPMorgan Asset Management noted, “There’s a lot of investor trepidation across the market… trying to digest… volatility and uncertainty.”
In Asia, stock markets in Australia, Japan, and South Korea exhibited growth, driven largely by increased consumer spending in China. While a primary index for Chinese shares in Hong Kong recorded gains, the onshore CSI 300 Index ended slightly lower, indicating some caution due to concerns surrounding a potential housing slump in China.
US Treasuries remained steady on Monday, with the benchmark 10-year yield decreasing by 1 basis point to 4.30%. Investors are also keeping a close watch on a series of central bank meetings this week, particularly as President Trump’s trade policies challenge economic stability. The Bank of Japan is anticipated to maintain its interest rates after a recent hike, while the Bank of England is expected to remain steady.
Federal Reserve Chairman Jerome Powell faces the challenge of reassuring investors regarding the economy’s solid footing while signaling readiness to provide necessary support. Analysts at Barclays Plc expressed, “Trump and his administration have expressed more tolerance for adverse economic fallout from tariffs than we had thought.” They predict the Fed’s median dot plot will suggest one rate cut this year and two the following year.
In commodity markets, gold prices saw a slight uptick despite closing lower on Friday, as risk sentiment shifted.
Overall, the article highlights the contrasting market movements, with US futures declining against a backdrop of Treasury Secretary Bessent’s comments, while Asian shares rallied due to positive Chinese consumption data. The situation is further complicated by ongoing uncertainties in the US economy and international trade relations, as investors remain cautious ahead of key economic data and central bank meetings. Market participants are looking for signs that could influence future Federal Reserve decisions and overall economic stability.
Original Source: news.az
