Fresh losses for indices

Selling has continued in European and US markets today, although at a less frenetic pace than we saw last week, says Chris Beauchamp, chief market analyst at online trading platform IG.

Subdued move prevails across markets

“The impact of Friday’s payroll report and its implications for Fed policy and the economic outlook continue to loom large over markets. While Friday’s knee-jerk move was perhaps an overreaction in the near-term, the overall outlook remains highly unfavourable to equities. Even the prospect of earnings season provides little comfort, since Q3 numbers are likely to be uninspiring while Q4 guidance will be cautious at best.”

Stronger dollar cushions European markets

“European stocks did better this morning, thanks perhaps in large part to the weaker pound and euro. But the fresh outrages in Kyiv are another reminder that European markets face an even tougher winter than those in the US, despite the massive support being provided by governments. The bounce is already fizzling out, with more pain for European stocks ahead this quarter.”