U.S. stocks fall sharply on China growth worries

Futures on the Nasdaq exchange were down 0.5 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan stood virtually flat. Williams fell 7.9 percent, while Energy Transfer slumped 9.7 percent.

– Wholesale gasoline fell 4.7 cents to close at $1.349 a gallon. Federal Reserve Bank of New York President William Dudley said in an interview with The Wall Street Journal on Monday that he expects policymakers will raise rates this year.

Australia’s S&P ASX 200 index headed south to a more than three-week trough. Hiring is coming back and the housing the market is recovering.

Tonight most attention will be on the United States economic calendar with the release of core PCE inflation, a favourite gauge on inflationary pressures among FOMC members, personal incomes and consumption data along with pending homes figures for August. Britain’s FTSE 100 fell 0.4 percent to 6,086.14.

The catalyst is the ongoing fallout from last week’s speech by Federal Reserve chairman Janet Yellen, in which she reinforced the case for a rate hike before the end of the year, something that hasn’t happened since 2006. Thursday’s China Caixin Purchasing Managers’ Index (PMI), will be more closely watched than usual by currency traders, who reckon a sharply slowing Chinese economy could delay rate hikes by the Fed. To the downside, immediate support level is located at 120.00 levels.

Some investors interpreted the Fed’s decision to keep short-term rates near zero at its meeting in September as a lack of confidence in the US economic recovery.

Alcoa Inc. shares rose 2.8% to $9.32 after the aluminum maker said it would split into two publicly traded companies, one focusing on mining and refining and the other on more finished industrial products. The loonie traded between C$1.3319 and C$1.3385 in the United States session on Monday.

The dollar fetched ¥120.23 after edging up to a two-week high of ¥121.24 on Friday while the euro was steady at $1.1185 after shedding 0.3% overnight.

Asian markets began the week on a mixed note, as sluggish data from China tempered sentiment in the region. To the upside, immediate resistance can be seen at 1.3414.

USA stock markets settled sharply lower on Monday as investors anxious about the health of China’s economy and its potential impact on the timing of a U.S. interest rate increase.

The broad-based S&P 500 lost 49.57 (2.57 percent) at 1,881.77, while the tech-rich Nasdaq Composite Index tumbled 142.53 (3.04 percent) to 4,543.97.

Stocks are in free fall today, as concerns about global growth continue to send investors hurrying for the exits.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.11 percent. Brent Crude, a benchmark for global oils, was up 1 cent to $48.02.

VW LOWER AGAIN: Volkswagen shares were down 8.2 percent as German prosecutors opened an investigation against the company’s former CEO, Martin Winterkorn, to establish what his role was in the emissions-rigging scandal. “Earnings are going to be really important this quarter considering the macro backdrop and general global fears as well as the concerns about the Fed potentially raising interest rates as early as next month”.