(Bloomberg) — US equity futures dropped after Treasury Secretary Scott Bessent dismissed the market’s recent decline as healthy. Asian shares rose as data showed expanding consumption in China.
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Oil also benefited from optimism that demand from top importer China will rise. The dollar was steady, with European stock futures little changed.
Equities advanced in Australia, Japan and South Korea. A key gauge of Chinese stocks listed in Hong Kong gained as much as 1.3% before trimming the gain. China’s onshore benchmark CSI 300 Index fluctuated, reflecting caution on signs of a worsening housing slump in the world’s No. 2 economy.
Asian defense stocks jumped after German peers advanced on an agreement reached between the country’s conservative leader Friedrich Merz and the Green party on a debt-funded spending package for defense and infrastructure.
In Europe, the focus remains on Germany, where Merz’s spending plan still needs approval from lawmakers on Tuesday. Investors will also likely shift their attention to fresh US retail sales and manufacturing data due later Monday, which can shed more light on the state of the world’s top economy and the policy direction of the Federal Reserve.
Treasuries were largely steady in Asia trading, with the benchmark 10-year yield down 1 basis point at 4.30%.
Elsewhere, investors will also be monitoring a swath of central bank meetings this week as President Donald Trump’s trade salvos test policymakers’ nerves. The Bank of Japan is expected to keep its rate steady after a hike last month and the Bank of England is expected to stand pat.
Meantime, Federal Reserve Chairman Jerome Powell Jerome faces a tricky task of both assuring investors the economy remains on solid footing and policymakers are ready to step in with support.
“Trump and his administration have expressed more tolerance for adverse economic fallout from tariffs than we had thought,” Jonathan Millar and colleagues at Barclays Plc wrote. For the Fed, “we expect the median dot to show just one cut this year and two next.”
In commodities, gold was steady after closing lower Friday for the first time in four days amid risk sentiment.
Key events this week:
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US retail sales, Empire manufacturing, Monday
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Canada CPI, Tuesday
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US housing starts, import price index, industrial production, Tuesday
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Brazil rate decision, Wednesday
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Eurozone CPI, Wednesday
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Indonesia rate decision, Wednesday
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Japan rate decision, industrial production, Wednesday
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US Fed rate decision, Wednesday
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Australia unemployment, Thursday
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China loan prime rates, Thursday
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South Africa rate decision, Thursday
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Sweden rate decision, Thursday
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Switzerland rate decision, Thursday
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Taiwan, rate decision, export orders, Thursday
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UK rate decision, jobless claims, unemployment, Thursday
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US jobless claims, existing home sales, Thursday
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EU leaders summit in Brussels to discuss defense spending, Thursday
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ECB President Christine Lagarde speaks, Thursday
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Bank of Canada Governor Tiff Macklem speaks, Thursday
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Chile rate decision, Friday
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Japan CPI, Friday
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Malaysia CPI, Friday
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New York Fed President John Williams speaks, Friday
