Asian Stocks to Trade Lower as US-EU Tensions Mount
Asian markets are expected to decline on Monday as tensions between the US and European Union (EU) escalate. The market will also closely monitor upcoming central bank monetary policy decisions.
Market Performance
* Australian shares fell at the open, with futures in Hong Kong indicating early losses.
* Japanese futures remained steady, while US futures contracts traded within a narrow range.
* The S&P 500 closed marginally lower on Friday, while Treasuries gained as traders anticipated a Federal Reserve rate cut in September following weak retail sales data.
US-EU Tensions
Heightening tensions between the US and Europe have rattled investors. President Donald Trump's tariff plans have sparked threats of retaliation, while Vice President JD Vance has criticized European allies. The lack of clarity from the US administration has weakened market sentiment.
Central Bank Decisions
The Reserve Bank of Australia (RBA) is anticipated to begin a rate cut cycle on Tuesday. New Zealand's central bank is also expected to continue easing on Wednesday to bolster its economy.
China Stocks
Chinese stocks are under scrutiny after US-listed mainland shares surged by 2.3% on Friday. A potential meeting between President Xi Jinping and Jack Ma could further drive gains.
Key Economic Events
* Japan GDP, tertiary industry index (Monday)
* Australia rate decision (Tuesday)
* Canada CPI (Tuesday)
* New Zealand rate decision (Wednesday)
* Indonesia rate decision (Wednesday)
* US FOMC minutes (Wednesday)
* Japan CPI (Friday)
Market Movers
* S&P 500 futures were unchanged in Tokyo
* Hang Seng futures declined 0.6%
* Australia's S&P/ASX 200 dropped 0.8%
* Euro remained steady at $1.0486
* Bitcoin fell 1% to $96,236.48
This information was generated with the assistance of Bloomberg Automation.