Asian equity markets experienced gains as the US Dollar (USD) weakened, reflecting investor caution ahead of the European Central Bank's (ECB) updated economic outlook. This shift in sentiment follows recent weak US employment and services sector data, raising concerns over the health of the world's largest economy amid ongoing trade tensions and tariff uncertainties.

Global financial markets opened the week on a cautious note as U.S.–China trade frictions intensified and investors braced for key labor data from the United States alongside anticipated monetary easing from the European Central Bank (ECB). The U.S. dollar (USD) declined against a basket of major currencies, while equities across Asia and Europe, particularly in the steel and aluminum sectors, faced downward pressure.

The recent decision by the European Central Bank to grant approval for UniCredit SpA to acquire Banco BPM SpA marks a significant development in the Italian financial sector. This decision paves the way for further consolidation within the banking industry in Italy and highlights UniCredit's growing competitiveness.

The European Central Bank (ECB) has intensified discussions around creating a digital version of the euro (CBDC), spurred by evolving changes in the global financial landscape. A significant catalyst for this move is the recent decision by former US President Donald Trump regarding the backing of stablecoins.