U.S. equity futures have decreased following Treasury Secretary Bessent’s comments framing the market slump as a correction. In contrast, Asian shares surged due to positive consumer data from China. Oil prices rose on expectations of increased demand from China, while the dollar and euro remained stable as markets prepare for U.S. retail and manufacturing data ahead of the Federal Reserve’s policy announcement.
United States equity futures experienced a decline following remarks from Treasury Secretary Scott Bessent, who characterized the market’s recent downturn as a necessary correction. On the other hand, Asian shares rose, spurred by positive data reflecting increased consumption in China, as reported by News.Az, citing Bloomberg. Optimism regarding China’s demand led to a rise in oil prices, while the dollar and euro remained relatively stable, with European stock futures indicating a stable market opening.
Bessent’s comments had a significant impact on U.S. stock futures, as he indicated minimal concern regarding the recent slump, which has resulted in a considerable loss of value amid ongoing efforts to reform U.S. economic policies. Attention in Europe is directed towards Germany, where the spending plan proposed by Chancellor-in-waiting Friedrich Merz is set for parliamentary approval this week.
Data regarding U.S. retail sales and manufacturing, to be released on Monday, will provide further insight into the state of the world’s largest economy prior to the Federal Reserve’s policy announcement later in the week. Travis Spence, the global head of exchange-traded funds at JPMorgan Asset Management, noted, “There’s a lot of investor trepidation across the market now, trying to digest all the additional volatility that’s happening and additional uncertainty.”
In Asia, equities gained in Australia, Japan, and South Korea, bolstered by reports of growing consumption in China. Even as a key index for Chinese shares traded in Hong Kong increased, the onshore benchmark CSI 300 Index fell slightly, indicating some caution due to signs of a potential housing market decline in China, the world’s second-largest economy.
Treasuries remained steady on Monday, with the benchmark 10-year yield decreasing by 1 basis point to 4.30%. Investors are also attentive to a range of central bank meetings this week, particularly in light of trade tensions introduced by President Donald Trump, which have tested policymakers’ composure. It is anticipated that the Bank of Japan will hold its rate steady following a recent hike, and the Bank of England is expected to maintain its current stance.
Federal Reserve Chairman Jerome Powell faces the challenge of reassuring investors regarding the economy’s stability while also preparing to offer support as necessary. Analysts at Barclays Plc stated, “Trump and his administration have expressed more tolerance for adverse economic fallout from tariffs than we had thought,” projecting that, for the Federal Reserve, “we expect the median dot to show just one cut this year and two next.”
In the commodities market, gold prices rose after experiencing a slight decline on Friday, marking its first reduction in four days amid shifting risk sentiments.
In summary, U.S. futures have declined amidst Treasury Secretary Scott Bessent’s alleviating remarks about market conditions, while Asian markets improved following positive consumption data from China. As the Federal Reserve’s policy meeting approaches, investors remain cautious, with the onshore Chinese market reflecting some concerns about housing. Observers await significant economic reports from the U.S. and central bank meetings worldwide, particularly in relation to ongoing trade tensions initiated by President Trump.
Original Source: news.az
