Asian stocks retreated on Monday after the People's Bank of China said it would cut the amount of cash that banks are required to hold as reserves by 100 basis points effective Oct. 15.
China's Shanghai Composite Index plunged 104.84 points 3.7 percent to finish at 2,716.51 as traders returned to their desks after the Golden Week holidays. Hong Kong's Hang Seng Index tumbled 370.00 points or 1.4 percent to 26,202.57.
Markets in Europe closed with sharp losses as the sharp drop in the Chinese stock market contributed to the negative mood among investors. European indexes were further dragged down by worries over Italy's fiscal policy stance. Italian lenders Unicredit, Ubi Banca, Mediobanca and Banco BPM all closed the day down 3.5 percent or more each. In Athens, the banking index was also under intense pressure. Continued turbulence in relations between the Italian government and the EU over the latter's draft budget also affected Greek bonds.
Wall Street closed mixed on Monday as investors continued to fret over a sharp rise in interest rates. The bond markets were closed along with banks and federal offices amid the Columbus Day holiday.
Many traders remained away from their desks. The tech sector recorded some losses, the Dow Jones finished higher for the first time in the last three sessions.
In Brazil, stocks rose sharply on the first trading day of the week after far-right presidential candidate Jair Bolsonaro won in the first round of voting.
World Markets Headlines Today
European Shares Set For Soft Start (RTT News)
European markets open slightly lower as Asian shares fall (CNBC)
European markets are lower today with shares in France off the most (CNN Money)
Asian market sell-off picks up pace, Shanghai tumbles (Fin24)
India: Sensex, Nifty trim gains, Vedanta shares slump 5% (Mint)
Australia: ASX in biggest slide in 6 months (Australian Business Review)
Dow drops 200 points, heads for 3-day losing streak amid fears of rising rates (CNBC)
Brazilian stocks soar the most since January after far-right candidate wins first election round
Dow Falls, Nasdaq Sinks as Rising Rate Fears Weigh on Wall Street (The Street)
Nasdaq leads broad stock declines as interest-rate-fueled drop gains steam (Marketwatch)
Gold falls as China's policy ease supports dollar, Oil drops as US considers granting some countries waivers on Iran sanctions
All Continents Stock Indices Closing Prices
Japan's Nikkei fell 0.80% and Hong Kong's Hang Seng was off 1.39%
China's Shanghai Composite slumped 3.72% while Shenzhen's Composite dipped 3.82%. Mumbai's Sensex increased 0.28% while Nifty 50 was up 0.31%. Australia's ASX200 dropped 1.38%. Singapore's STI was down 0.88%. Jakarta's Composite rose 0.51% and Taiwan's Weighted Index finished the day 0.58% in the hole. Thailand's SET was off 1.41%. Kuala Lumpur's KLCI moved downward 0.08%.
The Paneuropean STOXX600 was lower by 1.12%. France's CAC decreased 1.10%. London's FTSE fell 1.16% and Amsterdam's AEX fell 1.11%. Belgium's BEL 20 was lower by 1.29%. Lisbon's PSI20 was off 1.56% while Spain's IBEX 35 moved downward 0.59%. Italy's FTSE MIB decreased 2.43%.
In Russia, Moscow's IMOEX climbed 0.14%. In Scandinavia, Stockholm's OMXS30 was off 0.84% while Copenhagen's OMXC25 decreased 2.19%. Helsinki's OMXHPI moved downward 0.80%.
In Central Eastern Europe, Budapest's BUX was off 0.48% while Warsaw's WIG was down 1.54%. Prague's PX fell 0.72%. Bratislava's SAX was up 0.15%. Tallinn's OMXT was lower by 0.46% and Riga's OMXR rose 0.41%. In Vilnius, the OMXV dropped 0.25%.
In Southeastern Europe, Bucharest's BET was off 0.39%. Sofia's Sofix fell 0.78%. Belgrade's Belex15 dropped 0.52%. Podgorica's MNSE10 was lower by 0.08%. Sarajevo's SASX10 was higher by 1.25% while Banja Luka's BIRS increased 0.42%. Ljubljana's SBI Top was down 0.71%. Zagreb's CROBEX was lower by 0.46%. In Skopje, the MBI10 lost 1.32%. Istanbul's BIST 100 finished the day 1.27% in the green. In Athens the General Index dipped 2.61% while in Nicosia dropped 1.41%.
Botswana's DCI fell 0.11% and Johannesburg's ASI dropped 0.35%. Nigeria's ASI was higher by 0.19%. Namibia's ASI was off 0.64%. In Mauritius, the ASI decreased 0.11%. Uganda's ASI moved downward 0.22%. Zimbabwe's Industrial Index surged 7.51%.
In the U.S., the Dow Jones advanced 0.15% and the S&P 500 ticked down 0.04%. The Nasdaq was off 0.67%.Brazil's Bovespa jumped 4.57% while Mexico's IPC rose 0.08%. Chile's IPSA was up 1.28%.