Screens at the London Stock Exchange in London, the UK. Picture: BLOOMBERG/LUKE MACGREGOR
But in a negative sign for the stressed housing market, China’s new home prices fell 0.2% month-on-month in October, the biggest decline since February 2015. And economists at CBA said there was a chance the Chinese central bank would cut bank reserve requirements this week to support activity. Elsewhere, the UN climate conference in Scotland managed to hammer out a deal on emissions, but only by watering down a commitment to phase out coal.Attention was expected to return to when major central banks will respond to the emergence of inflation pressures.
“If inflation stays high and comes in above the planned overshoot, the Fed will need to become much more hawkish and either accept a market correction or deliberately induce such a correction,” warned Harris. European Central Bankpresident Christine Lagarde will appear before European Parliament later on Monday.
Analysts at BofA noted 75% of US companies had beaten earnings estimates in the latest reporting season but forecasts for the fourth quarter were only flat, breaking more than a year of rising expectations.