European Markets Seen Opening Weak

(RTTNews) - Markets in Europe are expected to open on a weak note on Monday as world markets fret about the monetary policy outlook. Major central bankers are congregating in Jackson Hole, Wyoming later in the week to deliberate on monetary policy. Credit risk concerns from China and the less-than-expected policy support from Beijing are also expected to weigh on markets.

Wall Street had closed on a weak note on Friday, as rate hike worries and credit risks from China dampened sentiment. The Nasdaq Composite dropped 0.20 percent to close at 13,290.78 whereas the Dow Jones Industrial Average edged up 0.07 percent to finish trading at 34,500.66.

Similar sentiment prevailed at the European bourses and weakness in China-exposed stocks dragged down major benchmarks. The worse-than-expected slump in retail sales in the U.K. also weighed on sentiment. U.K.'s FTSE 100 and Germany's DAX, both shed 0.65 percent. Switzerland's SMI dropped 0.42 percent. France's CAC 40 erased 0.38 percent whereas the pan-European Stoxx-50 declined 0.34 percent.

Current indications from the European stock futures indicate a weak sentiment. The FTSE 100 Futures (Sep) is trading 0.03 percent lower. The DAX Futures (Sep) is currently trading 0.07 percent lower. The CAC 40 Futures (Sep) closed 0.26 percent lower on Friday. The pan-European Stoxx 50 Futures (Sep) has edged up 0.07 percent. The SMI Futures (Sep) closed 0.39 percent lower on Friday.

American stock futures are also indicating a weak sentiment, as Fed fears and China concerns weigh. The US 30 (DJIA) is trading 0.06 percent lower, whereas the US500 (S&P 500) is trading 0.09 percent lower.

Asian stock markets are trading on a mixed note in the backdrop of China's rate cut missing expectations and credit risk concerns mounting. Hong Kong's Hang Seng has plunged 1.4 percent whereas China's Shanghai Composite has shed 0.53 percent. New Zealand's NZX 50 has declined 1.2 percent. Australia's S&P ASX 200 has dropped 0.32 percent. South Korea's KOSPI has however gained 0.18 percent. India's Nifty 50 and Japan's Nikkei 225 are both trading more than 0.25 percent higher.

The greenback failed to rebound and the Dollar Index (DXY), a measure of the U.S. dollar's strength relative to six currencies, has edged lower to 103.36 versus the previous close of 103.38. The EUR/USD pair has increased 0.09 percent to 1.0883 whereas the GBP/USD pair has edged up 0.03 percent to trade at 1.2739.

Amidst the dollar's weakness, gold prices have rallied. Gold Futures for December settlement are trading at $1,919.75 per troy ounce, up 0.17 percent from the previous close.

Crude prices gained as supply concerns triggered by potentially lower exports from Saudi Arabia and Russia weighed on sentiment. Brent Crude Futures for October settlement increased 0.60 percent to $85.31 whereas WTI Crude Futures for October settlement increased 0.62 percent to $81.16.

The only major economic data release due on Monday is the producer price inflation reading for the month of July from Germany.

Major earnings updates due from the region on Monday include Christian Dior, Investment Latour, BHP Group, Macquarie, Bure Equity and Hexatronic Group.