ForexLive Asia-Pacific FX news wrap: Bessent cited in US equity index futures weakness

• UBS recommends diversifying portfolios across countries to decrease risk
• Metallurgical coal prices could rise above USD2K/ton in H2 2025
• Another Chinese province announces big subsidies to encourage consumption
• Japan Prime Minister Ishiba says Japan is not manipulating foreign exchange rates
• China Jan – Feb 2025 Retail sales 4% y/y (exp 4%) Industrial production 5.9% (exp 5.3%)
• China February 2025 New Home Prices fall 4.9% y/y and fall 0.1% m/m
• Rollover for U.S. Equity Index Futures is Monday, March 17, 2025: What You Need to Know
• PBOC sets USD/ CNY reference rate for today at 7.1688 (vs. estimate at 7.2199)
• Singapore Non-Oil Exports for February 2025 +7.60% y/y (vs.expected +8.70% prior -2.10%)
• ECB’s Villeroy says euro should take on a more important role internationally
• ECB’s Villeroy: Trump’s encouraging crypto is sowing the seeds of future upheavals
• US Treasury Secretary Bessent paves the way for a recession – can’t guarantee no recession
• G7 finance ministers will meet (virtually) on Monday
• New Zealand surveyed economists show a downward revision to the near-term growth outlook
• Weekend media – China should choose the right timing and force in easing monetary policy
• Goldman Sachs: Brent crude decline driven by shift in market focus – softer US growth eyed
• Data show speculative traders have flipped from a net short to a net long position on euro
• US Treasury Secretary Bessent welcomes lower stockmarket – says straight up is not healthy
• War updates: North Korea nukes, Russia wants no troops in Ukraine, Trump threatens Iran
• Weekend – China city Shenzen announced eased housing finance rules
• New Zealand February services PMI slumps back into contraction at 49.1 (prior 50.4)
• ECB’s de Guindos: Current uncertainty is even higher than it was during the covid pandemic
• Australian Treasurer warns of higher inflation to come, jobs hit also
• ICYMI: $US3 to 5 billion in US beef, pork and chicken trade to China is at risk
• Weekend – China released a 30-point plan aimed at boosting domestic consumption
• Trade ideas thread – Monday, 17 March, insightful charts, technical analysis, ideas
• Monday morning open levels – indicative forex prices – 17 March 2025
• Weekly Market Outlook (17-21 March)
• Video: Why April 2nd will be a watershed for markets
• Newsquawk Week Ahead: FOMC, BoJ, BoE, SNB, US Retail Sales, Aus jobs, Japan & Canada CPI
• Forexlive Americas FX news wrap 14 Mar. Sharply lower Univ. of Michigan ignored. Stocks up

The biggest weekend news to start the week was China’s State Council unveiling its “special action plan” on Sunday, aimed at boosting domestic consumption. The 30-point plan includes measures to increase household income, reduce financial burdens, and improve the overall consumption environment to encourage spending.

China was busy over the weekend with additional developments:

• Shenzhen announced eased housing finance rules, providing more support for the property market.
• China did not renew import licenses for an estimated $3-5 billion in US beef, pork, and chicken, signaling continued trade tensions.

And today we had more:

• Economic data for January-February showed solid growth in retail sales and industrial output, but unemployment ticked higher, and property investment remained weak.
• New home prices fell 4.8% in February, versus a 5.0% drop the previous month

From the US, Treasury Secretary Bessent spoke in a TV interview, making headlines with two key points:

• He welcomed falling stock prices, calling it a healthy correction.
• He wouldn’t rule out the possibility of a recession, adding to cautious sentiment.

Markets Reaction & Moves:

• US equity index futures opened lower after Globex reopened for the week’s trade.
• Oil prices spiked but later pulled back, with Middle East tensions in focus—Houthi attacks on US naval ships and Trump’s warnings to Iran and the Houthis were cited as factors.
• In FX markets, USD/JPY swung within a 40-point range, with no major yen-specific news beyond Japan’s Prime Minister Ishiba denying FX manipulation.
• Other major currencies traded in tight ranges, with AUD failing to catch a bid despite China’s 30-point consumption boost plan.

SPX (this is a CFD):

This article was written by Eamonn Sheridan at www.forexlive.com.