U.S. futures declined amid Treasury Secretary Bessent’s remarks, while Asian shares increased based on positive Chinese consumption data. Oil prices rose on expectations of bolstered demand from China. U.S. retail sales and manufacturing data are expected to provide insight ahead of the Federal Reserve’s policy decisions. Investor uncertainty persists amid trade tensions and economic volatility.

U.S. equity futures experienced a downturn following Treasury Secretary Scott Bessent’s remarks, which characterized the recent market decline as a healthy correction. In contrast, Asian shares rallied, buoyed by positive consumption data from China, as reported by News.Az citing Bloomberg. Oil prices also increased, driven by optimism regarding China’s potential demand growth, being the world’s leading importer. Meanwhile, the dollar and euro remained stable, and European stock futures suggested a steady market opening.

Bessent’s comments on the market slump, which has seen trillions in value erased due to changes in U.S. economic policies, significantly influenced U.S. stock futures. As attention shifts to Germany, the pending spending plan of Chancellor-in-waiting Friedrich Merz awaits parliamentary approval. Upcoming U.S. retail sales and manufacturing data, scheduled for release on Monday, are anticipated to provide further insight into the economy ahead of the Federal Reserve’s policy decision this week.

Travis Spence, global head of exchange-traded funds at JPMorgan Asset Management, remarked, “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 showed gains in Australia, Japan, and South Korea, propelled by recent indicators of improved consumption in China. Despite advances in a key gauge of Chinese shares listed in Hong Kong, the onshore CSI 300 Index concluded Monday slightly lower, reflecting concerns over a potential worsening housing slump in China.

U.S. Treasuries remained unchanged on Monday, with the benchmark 10-year yield decreasing by 1 basis point to 4.30%. Investors are also keeping a close watch on several central bank meetings this week, especially as President Trump’s trade policies test the resilience of policymakers. The Bank of Japan is anticipated to maintain its current rate after a recent increase, while the Bank of England is expected to keep its rates steady.

Federal Reserve Chairman Jerome Powell faces challenges in reassuring investors regarding the economy’s stability and indicating readiness to provide support if necessary. Analysts at Barclays Plc, including Jonathan Millar, observed, “Trump and his administration have expressed more tolerance for adverse economic fallout from tariffs than we had thought.” They further predicted that the Fed’s median projection may include one rate cut this year and two the following year.

In the commodities market, gold prices have slightly increased, recovering after a decrease on Friday, marking the first decline in four days as risk sentiment fluctuated.

In summary, U.S. equity futures fell following Treasury Secretary Bessent’s comments on the current market correction. Meanwhile, Asian shares rose due to positive consumption data from China. As investors anticipate key economic data and central bank meetings, uncertainty remains prevalent, particularly regarding U.S. economic policies and their impact on market stability. Investors are keenly watching the Federal Reserve’s strategy amid trade tensions and varying economic signals.

Original Source: news.az

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