Asian stocks opened weaker after a reversal in US equities on Friday, amid concern over whether trade tensions with China can be mended. The pound jumped on news of further progress in Brexit negotiations.
Shares declined in Japan, Australia and South Korea and US equity-index futures slid. Futures pointed to losses in China as optimism on a trade breakthrough at the end of last week tempered after White House economic adviser Larry Kudlow downplayed the potential for a quick deal.
The dollar steadied, while 10-year US Treasury yields held gains from Friday’s strong jobs report. The pound strengthened after the Times reported Theresa May has secured concessions from Brussels that’ll allow her to keep all of Britain in a customs union with the European Union and avoid a hard border in Northern Ireland.
Politics, geopolitics and central banks will be the focus of the week for investors with the US midterm elections likely to dominate coverage early on, seen as a referendum on the policies of President Donald Trump.
European traders will watch for further signs of progress on Brexit, with May due to discuss the latest proposals with her cabinet Tuesday. Investors then turn their eyes to the Federal Reserve, though officials are expected to keep the benchmark interest rate unchanged at their penultimate 2018 meeting Thursday.
Elsewhere, oil was on track for a sixth day of declines as sanctions on Iran oil snap back into place Monday.