US equity futures drop following remarks by Treasury Secretary Scott Bessent, indicating a healthy market correction. In contrast, Asian shares increased due to positive consumption data from China, with optimism boosting oil prices. Upcoming U.S. retail sales and manufacturing data, along with central bank meetings, are set to impact market sentiments significantly.
US equity futures experienced a decline as Treasury Secretary Scott Bessent referred to the market’s recent decrease as a healthy correction. Despite this, Asian shares rose, spurred by promising data that highlighted increased consumption in China. Oil prices also rose in anticipation of heightened demand from China, the world’s foremost importer, while the dollar and euro remained stable, with European stock futures indicating a steady market opening.
Bessent’s remarks regarding the recent market slump, which has led to significant value loss, contributed to the downward trend in US stock futures. Eyes are also on Germany, where Chancellor-in-waiting Friedrich Merz’s proposed spending plan is pending parliamentary approval. Upcoming U.S. retail sales and manufacturing data will provide additional insights into the economy before the Federal Reserve’s policy decision.
Investor sentiment remains cautious, with market volatility causing trepidation. As noted by Travis Spence, global head of exchange-traded funds at JPMorgan Asset Management, there is considerable uncertainty affecting the market. Asian equities in Australia, Japan, and South Korea advanced on the back of positive consumption data from China, although the onshore CSI 300 Index displayed slight declines due to concerns over a potential housing slump.
On Monday, Treasury yields remained steady, with the 10-year yield decreasing by 1 basis point to 4.30%. Investors are closely watching upcoming central bank meetings amid concerns related to trade policies instigated by President Donald Trump. The Bank of Japan is anticipated to maintain its rate following a recent increase, and the Bank of England is expected to remain unchanged.
Federal Reserve Chairman Jerome Powell faces the challenging task of reassuring investors of the economy’s strength while ensuring that policymakers are prepared to provide support if necessary. Analysts at Barclays Plc indicate that the Federal Reserve may predict just one rate cut this year and two in the following year. Additionally, gold prices saw a slight increase after a decline, reflecting changing risk sentiment in the market.
In summary, US futures have declined amidst comments from Treasury Secretary Scott Bessent, while Asian markets have improved due to positive economic data in China. Additionally, oil prices have surged as expectations for increased demand rise. The upcoming U.S. data and central bank meetings may further influence market dynamics as investors navigate ongoing uncertainties.
Original Source: news.az
