Mixed Economic Signals Send Asian and US Markets into Tumble
Asian shares fell amid mixed Chinese economic data and U.S. tariff impacts. Concerns rose over U.S. debt and economic policies following a credit rating downgrade. The tariff war affects consumer sentiment, with analysts closely watching spending trends. Global markets showed mixed results, with key economic meetings ongoing.
Asian shares took a dip on Monday as diverse Chinese economic indicators painted a worrisome picture of the struggling domestic economy, compounded by U.S. tariffs affecting exports. Meanwhile, U.S. shares and the dollar slipped, causing Treasury yields to rise following a Moody's downgrade of the country's credit rating.
Concerns about the U.S.'s towering $36 trillion debt are mounting as Republicans press for substantial tax cuts, potentially increasing debt by up to $5 trillion. U.S. Treasury Secretary Scott Bessent brushed off the downgrade but warned trade partners of maximum tariffs without fair trade deals.
Markets are sensitive to tariff impacts on consumer sentiment, with eyes on retail sector earnings. The Reserve Bank of Australia is poised to cut rates, while the euro gains from stability concerns regarding U.S. policies. Global markets and commodities show mixed trends amid this economic turbulence.
(With inputs from agencies.)
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