Stocks rally peters out as trade, Fed is­sues dom­i­nate

Mint ST - - MARK TO MARKET -

World stocks slipped on Mon­day, halt­ing a four-day re­cov­ery rally as anx­i­ety sur­round­ing global trade con­di­tions and ris­ing US in­ter­est rates damp­ened risk ap­petite. Euro­pean shares fol­lowed Asia lower as in­vestors read­ied for US con­gres­sional midterm elec­tions on Tues­day, while ster­ling briefly climbed on a news­pa­per re­port that a Brexit agree­ment was im­mi­nent. US stock fu­tures were down 0.3% amid con­cerns that a trade deal be­tween the US and China may not be struck soon. “Af­ter a four-day rally peo­ple tend to be­come a bit ex­hausted— and just gen­er­ally I feel like ev­ery­one’s on hold un­til the (end-novem­ber) G20 and also the Fed com­ing up,” said Gre­gory Per­don, chief in­vest­ment of­fi­cer at Ar­buth­not Latham. “Our sense is ab­so­lutely that there’s a lot of cash on the side­lines right now.”

With the Fed­eral Re­serve meet­ing on Wed­nes­day and Thurs­day, the prospect of even tighter US monetary pol­icy af­ter strong eco­nomic data is also on in­vestors’ minds. Mar­kets are now pric­ing in a higher prob­a­bil­ity of a De­cem­ber rate hike with fur­ther tight­en­ing to 2.75-3% seen through 2019. REUTERS

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