By Avaneesh Pandey -
European stocks followed Asian equities lower Monday, hinting at another rough week in global markets -- amid fears that the U.S. Federal Reserve might yet raise interest rates in September.
Germany’s DAX opened more than 0.9 percent lower and the French CAC 40 declined nearly 1 percent. The pan-European Stoxx 600 was down 0.2 percent. U.S. stock markets are also expected to open in the red, with most stock futures down nearly 1 percent at 4.00 a.m. EDT.
Asian equities closed mostly lower and, according to Reuters, Monday’s downturn might be a result of investors bracing for Chinese data Tuesday, which is expected to show a slowdown in the country’s manufacturing and service sectors. Prospects of higher interest rates and returns in the U.S. have also diminished the appeal of emerging markets, as investors continue to dump riskier assets.
However, the yuan continued to rise for the fourth day after suspected intervention by state-owned banks on behalf of the central bank.
In India, amid fears over the health of emerging economies, GDP data for the April to June quarter are likely to show a 7.4 percent growth -- just short of the 7.5 percent expansion between January and March -- according to estimates by Bloomberg and Reuters. Official figures are scheduled to be released later Monday.
“[India’s] growth momentum has improved in the last two years, but the pace of recovery has been frustratingly slow,” Kaushik Das, an economist with Deutsche Bank (XETRA:DBKGn), told Reuters.