Wall Street was mixed on Monday afternoon while the FTSE 100 and European stocks were in the red as investors continue to digest last week's central bank decisions and look ahead to an updated reading for second-quarter US GDP and consumer-spending data.
US Treasury yields and Germany’s 10-year-bond yield also marched higher as traders consider the impact of the "higher-for-longer" interest rate stance taken by some of the world's biggest central banks, including the US Federal Reserve.
Shares in Disney (DIS) and Netflix (NFLX) rose in afternoon trade after Hollywood writers reached a tentative deal to end a strike action. meanwhile, Paramount (PARA) and Warner Bros Discovery (WBD) fell.
FTSE and European stocks
Across the pond, the FTSE 100 (^FTSE) closed down 0.85% to 7,618.28 points, while the CAC 40 (^FCHI) in Paris fell 0.88% to 7,121.24 points. In Germany, the DAX (^GDAXI) declined by 1.05% to settle at 15,393.86 points.
Entain (ENT.L) was among the companies at the bottom of the FTSE index after it warned that it is expects online gaming revenues to drop in the third quarter and the full year. However, it maintained its full-year EBITDA guidance of £1bn ($1.22bn) to £1.05bn.
"Entain has slumped to the bottom of the UK index after warning about weaker online gaming revenues, dragging shares in Flutter (FLTR.L) down with it," Victoria Scholar, head of investment at Interactive investor, said.
"Miners like Rio Tinto (RIO.L), Antofagasta (ANTO.L) and Anglo American (AAL.L) are also in the red, after a weaker session for the Hang Seng (^HSI) and Shanghai Composite (000001.SS) overnight in China."
Shares in Asia-Pacific were mixed after the Bank of Japan (BOJ) also left its monetary policy unchanged last week.
The BOJ governor maintained that an ultra-easy monetary policy is needed until Japan sees a sustained inflation rate of 2%.
This week, investors will be looking toward inflation data from across the region, including from Singapore, Australia and Japan.
Japan’s Nikkei 225 (^N225) closed up 0.85% to 32,678.62 points, while the Hang Seng (^HSI) in Hong Kong lost 1.82% to 17,729.29. In mainland China, the Shanghai Composite (000001.SS) also declined, ending the session down 0.54% to 3,115.61 points.
The pound dipped to its lowest level in six months against the dollar and its weakest in four months against the euro on Monday, as jitters across markets hurt sterling, already weakened by the Bank of England's rate outlook.
Investors are keeping across oil market moves as Brent and West Texas Intermediate (WTI) continue to hover around $90 a barrel after Moscow announced a temporary ban on exports of gasoline and diesel to most countries, bringing new uncertainty into an already tight global market.
Costco is set to report later on Monday, while Micron is scheduled to report Q4 earnings on Wednesday. Revenue is forecast to fall for a fifth quarter in a row, by 41% to $3.89bn.
Nike is set to report on Thursday. Earnings are expected to decline for a third quarter in a row to 75 cents per share, from 93 cents a year ago, while revenue is forecast to rise by 2.5% to $13.01bn. It would mark the slowest growth in over a year.
US economic growth slowed in August as industrial activity moderated, according to data from the Federal Reserve Bank of Chicago.
The Chicago Fed National Activity Index fell to minus 0.16 in August from a revised 0.07 in July. A reading below zero suggests economic activity is expanding at a slower rate than its average historical trend.
Final US GDP growth figures are also due on Thursday for the second quarter and expectation is for growth in the quarter to be reduced to an annualised rate of 2.2% compared to the preliminary figure of 2.4% and the first quarter's expansion of 2.0%.
Core PCE data will be released on Friday. The US Core PCE price Index is forecast to come in at 3.9% in August, compared to 4.2% in July.
Meanwhile, business sentiment in Germany worsened in September with the Ifo index dropping for a fifth month in a row. It came in at 85.7, from 85.8 in August — one of the weakest readings of the last five years.
“What today's reading shows is that the economic picture has not changed. The Chinese economy is still not gaining momentum and, at the same time, has become a rival to the German economy. The European Central Bank continues hiking interest rates and the delayed impact of tighter monetary policy will continue to weigh on the economy,” analysts at ING said.
“Policy uncertainty regarding the energy transition and energy prices has also not disappeared. The recently announced policy measures have, so far, done very little to turn sentiment around.”