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):

S&P 500 chart wrap 17 March 2025 2
Source: Forex Live