1. China stocks plunge 8.5%, biggest one-day drop since February 2007
The Shanghai Composite tumbled 8.5% on Monday, the biggest one-day drop since February 2007, on weak industrial profits and amid reports that government buying of stocks and securities has slowed.
Equity markets in China plunged sharply earlier this month, forcing policymakers to intervene and provide measures to boost liquidity and calm investors.
2. U.S. durable goods data in focus
The U.S. is to release data on durable goods orders at 8:30AM ET. The report is expected to show that orders for durable goods rose 3.0% in June, while core orders inched up 0.5%.
Investors awaited the outcome of the Federal Reserve's two-day monetary policy meeting due to begin on Tuesday to see if policymakers will give any indication on the timing of a rate lift-off.
3. Teva to buy Allergan (NYSE:AGN_pa) Generics for $40.5 billion
Israeli drug-maker Teva Pharmaceuticals (ARCA:TEVA) agreed to acquire the generic-drug division of Allergan in a cash-plus-stock deal valued at $40.5 billion, it announced on Monday.
Allergan will receive $33.75 billion in cash and shares in Teva valued at $6.75 billion, giving it a 10% stake in the enlarged company, according to a statement from the Israeli company.
The Israeli drug-maker added that it has withdrawn its cash and stock proposal for rival Mylan.
U.S.-listed shares of Teva surged 11.8% in pre-market trade, Allergan (NYSE:AGN) rose 5.5%, while Mylan (NASDAQ:MYL) shares slumped 11.9%.