(Bloomberg) – Stocks slipped on Monday as traders waited for further development on the trade front, while unrest in Hong Kong contributed to risk-free sentiment. Gold and yen climbed.
Stoxx Europe 600 fell, led by banks and miners. US stock futures also fell after President Donald Trump over the weekend said that America has not yet reached an agreement with China, stressing that he would not eliminate all tariffs. Hong Seng's Hang Seng index lost nearly 3% after a protest was shot by police during tomorrow's commute. Shares in Shanghai were declining, while Japanese stocks were little changed. Veterans Day in the US means no trading in government bonds.
Hong Kong turmoil reminds investors of persistent geo-political risks as US-China trade talks continue. Data over the weekend showed that Chinese factory door prices fell for a fourth month, raising concerns about the effects of the trade war on the world's second-largest economy. Still, Alibaba's sales event started with a bang, helping investors gauge how willing Chinese consumers are to spend because economic growth threatens to slip below 6%.
"Looking further into the week, we can expect to see further fallout" amid data on trade balance, manufacturing and industrial output for some of the world's largest economies, said Siobhan Redford, a Johannesburg-based economist at FirstRand Bank Ltd. “If these numbers reflect further deterioration in economic activity, we can expect markets to continue to perform weaker. "
Elsewhere, the Socialists will win the largest number of votes from Sunday's election in Spain, but the fragmented results point to this week's negotiations with party leader Pedro Sanchez if he were to form a government. Crude oil withdrew from a seven-week high.
Here are some key events coming up this week:
Earnings include Tencent, Nissan Motor, Japan Post Bank and Mitsubishi UFJ.New Zealand's political decision due Wednesday, with market prices tilting in favor of a rate cut . Leading leader Jerome Powell is addressing the Joint Economic Committee for Congress, in Washington on Wednesday. Minneapolis Fed President Neel Kashkari speaks in La Crosse, Wisconsin. Thursday brings China retail and industrial production data. U.S. Retail sales on Friday are expected to resume in October after an unexpected fall last month.
These are the most important movements in the markets:
Futures on the S&P 500 index fell 0.3% from 8:10 am in London. The Stoxx Europe 600 index fell 0.2%. Shanghai Composite Index fell 1.8%. MSCI Emerging Market Index fell 1.2%.
The Bloomberg Dollar Spot Index remained unchanged. The euro rose 0.1% to $ 1.1025. The British pound rose 0.2% to $ 1.2801. The yuan on land fell 0.2% to 7.008 per dollar. The Japanese yen rose 0.3% to $ 108.98 per dollar.
Bonds  Germany's 10-year yield remained unchanged at -0.26%. Britain's 10-year return advanced one basis point to 0.794%. Japan's 10-year return reduced one basis point to -0.063%.
West Texas Intermediate Crude Oil dipped 1.1% to $ 56.62 a barrel. Iron ore fell 0.7% to $ 76.99 per tonne. Gold gained 0.3% to $ 1,463.44 per ounce.
– With assistance from Cormac Mullen and Sybilla Gross.
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