U.S. equity futures dropped amidst Treasury Secretary’s remarks on market corrections, while Asian shares gained on positive Chinese data. Oil prices rose with demand optimism, and the Treasury market remained steady. Upcoming U.S. retail sales data and central bank meetings are crucial for investors.
U.S. equity futures experienced a downturn following Treasury Secretary Scott Bessent’s remarks, which characterized the recent market decline as a “healthy correction.” This correction has wiped out trillions of dollars in market value as changes in U.S. economic policies are underway. Meanwhile, Asian shares rose, bolstered by positive data reflecting a rise in consumption in China, as reported by News.Az, citing Bloomberg.
Oil prices received a boost, driven by optimism surrounding increased demand from China, the leading global importer. The U.S. dollar and euro remained relatively stable, with European stock futures indicating a steady market opening. In Europe, the focus is on Germany, where the forthcoming approval of a spending plan by Chancellor-in-waiting Friedrich Merz is anticipated.
Investors are notably interested in upcoming U.S. retail sales and manufacturing data, scheduled for release on Monday, as they will provide critical insights into the health of the U.S. economy ahead of the Federal Reserve’s decision on monetary policy this week. “There’s a lot of investor trepidation across the market now, trying to digest all the additional volatility that’s happening and additional uncertainty,” expressed Travis Spence, global head of exchange-traded funds at JPMorgan Asset Management.
In Asia, equity markets advanced in Australia, Japan, and South Korea, driven by data indicating expanded consumption in China. Despite a rise in a significant measure of Chinese shares listed in Hong Kong, the onshore CSI 300 Index concluded Monday slightly lower, reflecting apprehension about a potential deterioration in the housing sector of China’s economy.
The Treasury market showed stability on Monday, with the benchmark 10-year yield down one basis point to 4.30%. Furthermore, investors are expected to closely watch several central bank meetings this week as President Donald Trump’s trade policies challenge policymakers. The Bank of Japan is anticipated to maintain its interest rates steady, following a recent increase, while the Bank of England is also expected to remain unchanged.
Federal Reserve Chairman Jerome Powell faces the challenge of reassuring investors regarding the economic stability while indicating readiness to provide support if necessary. According to Jonathan Millar and colleagues at Barclays Plc, “Trump and his administration have expressed more tolerance for adverse economic fallout from tariffs than we had thought,” projecting only one rate cut for this year and two for the next. In the commodities market, gold experienced a slight increase following a decline on Friday, marking the first drop in four days amid fluctuating risk sentiment.
In summary, the financial landscape currently presents a mixed picture, with U.S. equity futures declining while Asian shares rise on positive consumption data from China. Oil prices are buoyed by anticipated demand increases, while stability in the Treasury market reflects cautious investor sentiment. As U.S. retail sales data approaches, central banks remain in focus amid ongoing trade uncertainties and policy considerations.
Original Source: news.az
