US and European futures slip as Asian equities retreat amid China economic concerns

US and European futures took a dip as Asian equities pulled back, marking a mixed start to the week. Concerns over China’s economic trajectory persisted despite a reduction in its mortgage reference rate.

Following a holiday closure in the US markets on Monday, futures for the S&P 500 and Nasdaq 100 eased, mirroring the downward trend in Asian stocks. Likewise, futures for the Euro Stoxx 50 index saw a decline, signaling a cautious sentiment across regions.

The Asian market saw a reversal in momentum, with benchmarks in Japan, Australia, and South Korea trading in the negative territory. Although the Nikkei 225 and global stocks were hovering close to their record highs, the overall sentiment was subdued.

Investor attention remained fixated on China’s economic policies, particularly after domestic banks slashed a key mortgage reference rate, indicating efforts to stimulate the property sector. While Chinese developer stocks saw some gains, the overall market response was lukewarm, with trading volumes hinting at state-backed support.

Learn how to trade futures with Top Forex and CFD brokers

Anticipation surrounded the upcoming earnings report from Nvidia Corp., scheduled for Wednesday, which could inject fresh momentum into equities. Investors are keen to assess the impact of global economic dynamics on the chip giant, especially in light of its anticipated gains from advancements in artificial intelligence.

In Australia, BHP Group reported underlying profits slightly below consensus estimates, citing healthy demand from China despite housing market weaknesses.

In significant corporate news, Capital One Financial Corp. announced a $35 billion all-stock acquisition of Discover Financial Services, a move that would create the largest US credit card company by loan volume.

Market watchers are also eyeing the release of Fed meeting minutes on Wednesday and Eurozone inflation data on Thursday for potential market-moving insights.

Meanwhile, gold prices remained stable at around $2,020 per ounce, following a slight uptick earlier in the week. West Texas Intermediate, the US oil price, saw a modest increase amid ongoing tensions in the Red Sea, a critical trade route.