• Asian stocks have slumped to a 14 month low on the back of China worries.
• USD edges higher as trade tensions keep markets on edge, whilst oil rises as new production in US drilling stalls.
• Slightly higher dollar causes gold to fall, along with rate hike views and trade war worries.

Asian overnight: Fresh tariff concerns hit Asian markets overnight, with Apple suppliers particularly hard hit thanks to the US president’s tweets regarding the tech giant moving production to the US. Chinese stocks were lower, while Australia was broadly flat and Japan managed a small rise. Equities rebounded in the US after a better jobs report, with strength in wages particularly encouraging for US consumer spending.

UK, US and Europe: UK trade data is the main event of the morning, while a busier week for retailers kicks off with numbers from Associated British Foods. Expect plenty of focus on Sweden after an indecisive election result there, with the incumbent centre-left government likely to spend the next two weeks trying to form a coalition. 

South Africa: Global markets are trading mixed this morning with US Index Futures trading marginally higher, while most Asian markets (excluding Japan) are trading lower this morning. The Jse Allshare Index is expected to trade flat to marginally lower om open. The dollar continues to trade firmer and in turn we see commodity prices under marginal pressure this morning. Tencent Holdings is down 0.76% in Asia suggestive of a similar start for major holding company Naspers. BHP Billiton is down 0.32% in Australia suggestive of a softer start for locally listed resource counters. 

Economic calendar - key events and forecast (times in BST)

Source: Daily FX Economic Calendar

9.30am – UK trade balance (July), GDP (July):trade deficit forecast to widen to £2.3 billion from £1.8 billion. GDP to rise 0.1% MoM. Market to watch: GBP crosses

Corporate News, Upgrades and Downgrades

• AVI Ltd FY18 results showed headline earnings to have increased by 7% from the prior year.
• Afrox Ltd Interim results showed diluted core headline earnings per share to have increased by 11.5% from the previous year's interim period.
• Associated British Foods said that its full-year outlook was unchanged, as Primark profits offset lower sugar prices. Sales were down 2% like-for-like at Primark for the year to 15 September. 
• RPC Group has said that it is in discussions regarding a sale of the company with Apollo and Bain Capital.

Aurubis Upgraded to Neutral at Goldman
Rio Tinto Upgraded to Overweight at JPMorgan
Norsk Hydro Upgraded to Overweight at JPMorgan
Nornickel GDRs Upgraded to Overweight at JPMorgan

Danske Bank Cut to Hold at Kepler Cheuvreux
Scor Downgraded to Hold at Jefferies

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