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European stock markets won’t inherit the healthiest of leads, as Asian equities followed their Wall Street counterparts lower, and then some.
Japan’s Topix was down 1.1 per cent as a stronger yen weighed on exporters and Australia’s S&P/ASX 200 dropped 0.3 per cent, while Korean and Singaporean stocks were also lower. Markets in Hong Kong, Taiwan and the Chinese mainland were closed for a public holiday.
Futures tip London’s FTSE 100 to open flat on Tuesday, while the S&P 500 is expected to decline 0.2 per cent. The Wall Street benchmark ended 0.2 per cent lower on Monday.
In currency markets, the South African rand has dropped as much as 0.8 per cent in Asia trading after S&P downgraded the country’s credit rating to junk on Monday. The Australian dollar has stumbled after the country’s central bank left interest rates on hold, as expected, but warned on risky lending to the property market and sounded more downbeat on the current state of the labour market.
The US dollar index is down 0.1 per cent at 100.45, while the euro is fractionally higher at $1.0674 and the British pound has shed 0.1 per cent to $1.2477.
On the corporate front, earnings from online retailer Asos will be a likely highlight. Here is the rest of the economic calendar (London times):
- 07.00: Riksbank deputy governor Martin Flodén speaks
- 08.00: Spain monthly jobs change
- 09.30: UK construction PMI
- 10.00: Eurozone retail sales
- 11.00: Irish unemployment
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