(RTTNews) – European shares could open slow on Monday on concerns that higher borrowing costs could impact economic growth and corporate profits.
Asian markets were mostly lower ahead of key inflation data from across the region due this week.
Japan’s Nikkei average rose about 1 percent, while the yen rose to a closely watched level of 150 per dollar following the Bank of Japan’s decision Friday to leave stimulus measures unchanged.
Hong Kong’s Hang Seng index fell more than 1 percent on concerns about a broader debt freeze in China’s property market, after embattled developer China Evergrande Group said it was unable to issue new debt due to an ongoing government investigation into a unit.
Gold fell slightly after a stronger dollar offset growing fears of a US government shutdown. Oil prices rose modestly as investors focused on tighter supply prospects.
In economic publications, the closely watched Ifo Institute survey of business conditions for September could grab investors’ attention later in the day. UK GDP and EU inflation figures, as well as China’s manufacturing PMI data, will take center stage during the week.
Across the Atlantic, Fed-favored inflation numbers, a speech from Fed Chairman Jerome Powell, the final second-quarter GDP estimate and other reports on new home sales, durable goods orders and Consumer confidence is likely to be the focus this week.
U.S. stocks closed lower for a fourth day in a row on Friday as yields rose amid growing fears that the Federal Reserve could keep interest rates high for longer.
Concerns about a possible government shutdown also added to fears about high interest rates.
The tech-focused Nasdaq Composite finished marginally lower, closing at its lowest level in more than three months, while the S&P 500 fell 0.2 percent to hit a closing three-month low and the Dow Jones fell 0.3 percent fell to hit a two-month closing low.
European shares closed mostly lower on Friday after data showed business activity in the euro zone currency bloc shrank again in September.
The pan-European STOXX 600 fell 0.3 percent. Germany’s DAX ended marginally lower and France’s CAC 40 lost 0.4 percent, while Britain’s FTSE 100 closed flat with a positive bias.
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