Global Markets React to China's Deflation and US Economic Uncertainty; Hong Kong Stocks Fall Over 1%

Global markets showed mixed performance on Monday, impacted by China's deflationary pressures and rising concerns about the U.S. economy. Hong Kong stocks fell over 1%, reflecting worries about China's economic health after consumer prices dropped 0.7% in February, marking the first decline in 13 months (Source: AFP STR, March 10). This data reinforces concerns about entrenched deflationary pressures in China, with the property sector struggling and domestic demand remaining weak. In the U.S., equities, Treasury yields, and the dollar declined amid concerns about economic health. The S&P 500 futures contracts fell as much as 1.1% in early trading (Source: Bloomberg, March 10). Investors are increasingly worried about the impact of tariffs, a higher unemployment rate, and federal workforce job cuts on U.S. economic growth. Federal Reserve officials acknowledged rising uncertainty, and bond traders are signaling an increasing risk of an economic stall. West Texas Intermediate crude oil was down 0.6 percent at $66.62 per barrel (Source: AFP STR, March 10).