A pedestrian is reflected on an electronic board showing the graph of the recent fluctuations of the Japan’s Nikkei average outside a brokerage in Tokyo, Japan, August 27, 2015. Reuters/Yuya Shino
Stocks in Europe and Asia looked set on Monday for their worst monthly losses in at least three years, with investors still concerned about growth in China and the prospect of higher U.S. interest rates.
Falling share prices helped put pressure on the dollar, though weekend comments from U.S. Federal Reserve policymakers leaving the door open to a rise in interest rates as soon as next month kept it well above last week’s seven-month lows.
Oil prices fell again both on the Fed rates outlook and as investors took profits on last week’s 10 percent rise.
Just last week, after a sharp fall in Chinese shares sent global stocks tumbling, a rise in U.S. rates for the first time since 2009 next month had seemed off the table.
However, a senior Fed official said in a speech at the annual Jackson Hole symposium that U.S. inflation was likely to rebound, allowing rates to rise gradually.
“This is a market that is walking on glass; China seems to be the central theme feeding into a lot of these things, but today the focus is very much on U.S. interest rates again,” said, James McGlew, executive director of corporate stock broking at Argonaut in Australia.
The pan-European FTSEurofirst 300 stocks index .FTEU3 fell 0.5 percent and was on…