(Bloomberg) — US and European equity futures fell along with Asian stocks, after a reduction in China’s mortgage reference rate failed to dispel concerns about the world’s no. 2 economy.

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Contracts for the S&P 500 and Nasdaq 100 benchmarks retreated after US markets were closed Monday for a holiday. Futures for the region-wide Euro Stoxx 50 index also declined, while a gauge of Asian stocks dropped for the first time in four sessions.

Benchmarks in Japan, Australia and South Korea were all in the red. The Nikkei 225 and a gauge of global stocks were both around 1% away from their all time-high.

Attention was focused on China, where stocks fluctuated after domestic banks cut a key mortgage reference rate by a record amount, a sign that the nation was ramping up support for the property sector in a bid to revive demand. An index of Chinese developer stocks gained.

The cut to the five-year loan prime rate was a “good gesture from the commercial banks but still now the property problem is not about the mortgage rate,” said Willer Chen, an analyst at Forsyth Barr Asia Ltd. The move may “slightly boost the property demand but I would not expect much.”

Gains in Chinese equities on Monday fell short of expectations in the first session back following the Lunar New Year holiday. A rise in trading volume for several exchange-traded funds in the country offered a clue that state-backed funds were continuing to support the market.

“Confidence is low right now and there is a need to stabilize it,” Moh Siong Sim, currency strategist for the Bank of Singapore, said on Bloomberg Television regarding China’s latest effort to support the economy. “Monetary policy is being eased, that is likely to exert downward pressure on yields” for Chinese bonds, he said.

Turning Point

Earnings from bellwether Nvidia Corp. Wednesday may provide new impetus for equities as investors try to gauge the strength of the global economy. The chip giant has surpassed the market value of Amazon.com Inc on the expectation it will be a big winner from artificial intelligence developments.

“Nvidia results on Wednesday could be a turning point for the markets,” Charles-Henry Monchau, chief investment officer for Banque Syz, said on Bloomberg Television. “The market relies on very few large-cap growth stocks and if they disappoint for any reason there is a risk of a pullback.”

In Australia, BHP Group, the world’s largest miner, reported $6.57 billion in underlying profits, less than consensus estimates, and said demand from top customer China was healthy despite weakness in housing.

In other corporate news, Capital One Financial Corp. agreed to buy Discover Financial Services in a $35 billion all-stock deal that will form the largest US credit card company by loan volume.

Other potential catalysts for markets this week include Fed January meeting minutes to be released Wednesday and Eurozone inflation data due Thursday.

Elsewhere, gold was little changed after edging higher Monday to trade around $2,020 per ounce. West Texas Intermediate, the US oil price, edged higher against the backdrop of ongoing tensions in the Red Sea, a vital trade route.

Some of the key events this week:

• European Central Bank publishes euro-area indicator of negotiated wage rates, Tuesday

• Rio Tinto Plc earnings, Wednesday

• Eurozone consumer confidence, Wednesday

• Nvidia Corp earnings, Wednesday

• Federal Reserve Jan. meeting minutes, Wednesday

• Atlanta Fed President Raphael Bostic speaks, Wednesday

• Eurozone CPI, PMI, Thursday

• European Central Bank issues account of Jan. 25 meeting, Thursday

• Fed Governor Lisa Cook, Minneapolis Fed President Neel Kashkar speak, Thursday

• China property prices, Friday

• European Central Bank executive board member Isabel Schnabel speaks, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures fell 0.2% as of 3:27 p.m. Tokyo time

• Nasdaq 100 futures fell 0.2%

• S&P/ASX 200 futures were little changed

• Hong Kong’s Hang Seng was little changed

• The Shanghai Composite rose 0.3%

• Euro Stoxx 50 futures fell 0.3%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.0771

• The Japanese yen fell 0.2% to 150.38 per dollar

• The offshore yuan was little changed at 7.2087 per dollar

Cryptocurrencies

• Bitcoin was little changed at $51,927.38

• Ether fell 1.2% to $2,931.12

Bonds

• The yield on 10-year Treasuries advanced two basis points to 4.30%

• Japan’s 10-year yield was unchanged at 0.725%

• Australia’s 10-year yield advanced one basis point to 4.18%

Commodities

• West Texas Intermediate crude rose 0.4% to $79.49 a barrel

• Spot gold rose 0.1% to $2,019.48 an ounce

This story was produced with the assistance of Bloomberg Automation.

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