The final day of the third quarter gives a moderately stern warning to world markets. Admittedly the feared wave of selling in Asia as a consequence of Friday’s reports that Washington may look to delist Chinese companies from U.S. exchanges didn’t materialise, according to Reuters’ daily briefing.
Shanghai stocks shed about 0.3% on Monday and Hong Kong and Seoul rose more than 0.5%.
Trade Japan 225 - J225 CFD
The latest Chinese September business surveys showed some signs of stabilisation after months of weakness due to the escalated trade war.
Meanwhile in Europe, European Central Bank (ECB) President Mario Draghi who hands over the leadership of the ECB to former International Monetary Fund chief Christine Lagarde next month, reiterated the need for fiscal policy to support the extraordinary monetary stimulus the ECB continues providing the flagging euro zone economy.
European stock futures were marked lower before the open. A World Trade Organisation (WTO) ruling on Airbus subsidies is expected this week, with the WTO disclosing the amount of European Union goods the U.S. can target.
Sterling was steady first thing on Monday, with Boris Johnson continuing to insist he will not seek an extension to the 31 October Brexit deadline, despite legislation directing him to do so if he doesn’t seal a deal with the EU by the EU summit on 17-18 October.
Additionally, global stocks captured by MSCI’s all-country index were set to record the first negative quarter of 2019 with third-quarter losses around 0.8%.