China is considering a massive fiscal stimulus package, potentially issuing $850 billion in ultra-long special treasury bonds over the next three years. This move aims to address the nation’s slowing economic growth and ease pressure on local government debt. While the news initially boosted investor sentiment, the absence of a comprehensive economic package has left some disappointed.
Oil prices fell over 2% on Monday after OPEC reduced its global oil demand growth estimate for the third consecutive month. The cartel’s downward revision, based on actual consumption data and weaker demand expectations for certain regions, contributed to the decline. Investor disappointment over the lack of concrete Chinese fiscal stimulus further impacted commodity markets, including oil.
