US futures declined after Treasury Secretary Scott Bessent’s comments on a healthy market correction, while Asian shares rose due to positive Chinese consumption data. Oil prices increased amid expectations of boosted demand from China. Key US economic data is forthcoming, influencing the Federal Reserve’s decisions. Investor caution persists due to ongoing market volatility and trade policy concerns.
United States equity futures declined following Treasury Secretary Scott Bessent’s remarks in which he described the recent market downturn as a healthy correction. In contrast, Asian stock markets experienced growth due to positive data that indicated an increase in consumption within China, as reported by News.Az and Bloomberg. Additionally, oil prices rose driven by expectations of heightened demand from China, the leading global importer.
The commentary from Secretary Bessent indicated minimal concern regarding the market’s recent loss of value, which has amounted to trillions of dollars amid ongoing adjustments to US economic policies. In Europe, market observers are closely monitoring Germany, where a spending plan proposed by Chancellor-in-waiting Friedrich Merz is pending parliamentary approval this week.
Monday will bring important US retail sales and manufacturing data, pivotal for evaluating the state of the American economy prior to the Federal Reserve’s upcoming policy decision. 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…”
In Asia, stock indices in Australia, Japan, and South Korea displayed upward trends, supported by positive consumption data from China. However, while one significant indicator of Chinese shares based in Hong Kong increased, the onshore CSI 300 Index experienced a slight decline, reflecting caution amidst signs of a deteriorating housing market within China.
US Treasury yields remained stable, with the benchmark ten-year yield dropping by 1 basis point to 4.30%. Investors are also preparing for a series of central bank meetings this week, particularly noting that President Trump’s trade policies are influencing policymakers’ responses. The Bank of Japan is anticipated to maintain its interest rate following a prior increase, while the Bank of England is also expected to keep its rate unchanged.
Federal Reserve Chairman Jerome Powell faces a challenging landscape as he seeks to reassure investors of the economy’s stability, while also being prepared to offer support if necessary. According to analysts at Barclays Plc, “Trump and his administration have expressed more tolerance for adverse economic fallout from tariffs than we had thought,” and they predict limited interest rate cuts moving forward. In commodity markets, gold witnessed a slight increase after a four-day decline, indicative of fluctuating risk sentiment.
In summary, US equity futures fell as Treasury Secretary Scott Bessent characterized the market’s recent correction as healthy. Meanwhile, Asian shares gained, propelled by encouraging consumption data from China, although caution remained regarding the housing market. Key economic indicators from the US are expected soon, influencing the Federal Reserve’s policy decisions. Overall, there exists a sense of trepidation among investors facing various economic challenges and global central bank meetings.
Original Source: news.az
