Global Economic Tremors Amid U.S.-China Tensions

Economic uncertainty rises as Wall Street futures dip, the yen strengthens, and China's deflationary pressures loom. U.S. tariffs raise recession fears, while Trump's policies target structural changes. Markets react with falling Treasury yields and oil prices, as gold and cryptocurrency present mixed performances.

Wall Street futures experienced a marked decline as the yen and Swiss franc strengthened early Monday. This development is attributed to intensifying deflationary pressures in China, which are fueling concerns about global economic stability amid the U.S. economic slowdown and an escalating trade war.

U.S. S&P 500 stock futures were down by 0.5%, while Nasdaq futures fell by 0.6% as of 0137 GMT. In Asia, Hong Kong's Hang Seng index dipped by 0.1%, aligning with a mainland Chinese blue-chip index. Conversely, Japan's Nikkei index showed a slight increase of 0.2% after fluctuating between gains and losses.

Tensions are escalating as U.S. President Trump declines to predict the impact of tariffs on recessions. Meanwhile, soft economic data in the U.S., alongside geopolitical risks, is contributing to market volatility. Fallen oil prices and fluctuating cryptocurrency values reflect the turbulent economic landscape.

(With inputs from agencies.)