There is still a “compelling case” for the Fed to raise rates this week, strategists at Deutsche Bank wrote in a note. The Dow Jones industrial average and the S&P 500 each shed 0.4%, and the Nasdaq lost 0.3%. The CSI 300 Index dropped 2 percent. South Korea’s Kospi was down 0.8%. Energy and raw-materials producers have the biggest declines among 10 industries in the S&P/TSX this year.
US stock futures are dipping and most Asian and European indexes are in the red. Its latest closing price has a distance of +1.73% from SMA20 and is -9.77% below than SMA200. Tokyo ended 1.63 percent lower, hit by big losses in telecommunications firms after the media reported comments from Japanese Prime Minister Shinzo Abe on the need to reduce mobile phone fees.
The euro gave up about 0.5 percent to 135.39 yen, while it was flat against the dollar at $1.1323. Panic selling in China had started to ease last week, as Chinese authorities made fresh attempts to stabilize markets with a mix of stimulus and high-level assurances.
The yield on the 10-year U.S. Treasury bond was slightly higher at 2.220%.
Shares of Glencore slumped 4.1 per cent, poised for a fourth day of declines in Johannesburg. “The market is still weak”.
Japan’s Nikkei 225 index widened gains ahead of the Bank of Japan’s (BOJ) policy decision, which is due before noon.
China’s Shanghai Composite Index plunged 85.44 points or 2.67 percent before ending at 3,115.
Shenzhen’s start-up board ChiNext slumped 5.6 percent, while the CSI300 IT Index tumbled 6.9 percent. China’s securities regulator said late Monday it had closed more than 60% of illegal trading accounts and that the remaining accounts hold shares worth 187 billion yuan ($30 billion). “There is some nervousness exported from China, when their markets came under pressure yesterday”.
The Hang Seng index dropped 0.1 percent, to 21,482.22 points.
On the economic front, a trio of reports release by the Chinese National Bureau of Statistics on Sunday showed the questionable nature of the recovery. And fixed asset investment grew in January-August at its slowest pace in 15 years. Shipments also fell a steeper than initially estimated 0.4 percent. Henderson Land increased 0.3 percent to 49.25 HK dollars.
In corporate news, French insurer AXA announced the acquisition of an 18.6 percent stake in West African utility company Eranove from French conglomerate Bouygues. Economists had expected a 0.3 percent gain.
The government said growth in industrial production increased below expectations in August while retail sales accelerated a little more than forecast. Buyers worldwide are watching the Fed to see if it’ll hike rates of interest Thursday – for the primary time in nearly a decade. PKK’s Murat Karasu told Med Nuce TV channel that the organization is ready for talks with the government observed by intermediaries, Dogan News Agency reported. Indonesia’s trade data will also be on tap on Monday.