European markets close lower; euro zone manufacturing slump continues

Robert Lambrou, the AfD candidate for Hesse State, discusses German policy making ahead of regional elections. AfD, or Alternative for Germany, is a far-right political party that has gained traction in the country over recent years.

U.S. stocks opened down for the first trading session of the month and quarter.

The Dow Jones Industrial Average fell 51 points, or 0.1%. The S&P 500 and Nasdaq Composite declined 0.2% and 0.03%, respectively.

— Hakyung Kim

Grain prices have been in freefall of late as investors bet on a resurgence of supply from the U.S., Russia and Ukraine — but veteran strategist David Roche disagrees.

Contrary to market consensus, Roche, president and global strategist at Independent Strategy, expects a 13-15% annual increase in wheat prices over the next two years.

Read the full story here.

— Elliott Smith

The Bank of Japan announced on Monday said it will be increasing its bond purchases at Wednesday's auction, as a spike in government bond yields tests the central bank's resolve to defend its yield curve control policy.

The BOJ will conduct an unspecific amount of additional purchases of Japanese government bonds with tenures of more than five years and up to 10 years.

Yields on 10-year Japanese government bonds hit as much as 0.775% Monday, its highest since September 2013.

—Clement Tan, Lee Ying Shan

Euro zone manufacturing activity continued to decline sharply in September, according to HCOB and S&P Global's latest purchasing managers' index.

The survey found "weakness across the sector, with new orders continuing to shrink at a pace that has rarely been surpassed since the survey began in 1997."

Input costs for businesses were lower but the sector also saw falls in employment, purchasing activity and inventories as business confidence and growth expectations also weakened.

"In a bid to boost competitiveness and stimulate demand, eurozone manufacturers decreased their prices charged for a fifth successive month and to one of the greatest extents seen in 14 years," the survey's authors wrote.

The picture remained gloomy in Germany, where output fell at the steepest rate for nearly three and a half years.

— Jenni Reid

European stocks opened cautiously higher Monday, looking for a fresh start after the weakest quarter of the year and two straight monthly declines.

The regional Stoxx 600 index was up by 0.3% at 8:10 a.m. London time, with France's CAC 40 gaining 0.5%, Germany's DAX up by 0.36% and the U.K.'s FTSE 100 up 0.07%.

— Jenni Reid

House prices in the U.K. held steady on the prior month in September, but they were down 5.3% year on year, according to lender Nationwide.

That follows a monthly fall of 0.8% in August.

Robert Gardner, chief economist at Nationwide, said market activity remained weak and mortgage approvals were around 30% lower than in the pre-pandemic year of 2019.

Gardner noted that lower investor expectations for the Bank of England's peak rate had put downward pressure on the longer-term interest rates which underpin fixed rate mortgages, potentially easing pressure on new buyers and those remortgaging.

"Nevertheless, with Bank Rate not expected to decline significantly in the years ahead, borrowing costs are unlikely to return to the historic lows seen in the aftermath of the pandemic. Instead, it appears more likely that a combination of solid income growth together with modestly lower house prices and mortgage rates will gradually improve affordability over time, with housing market activity remaining fairly subdued in the interim," he said.

— Jenni Reid

Veteran emerging markets investor Mark Mobius has named two tech giants as key stocks in any portfolio investing in developing economies.

Mobius said the Chinese technology giants "could be the foundation of any portfolio" despite recent volatility. They are "still making good profits," he said, despite the "incredible" decline in their share prices over the past three years.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Goldman Sachs is bullish on one sector it describes as the "largest source of renewable energy in the world."

It named several global stocks that are slated to benefit from the global push toward sustainability and the renewable energy transition.

CNBC Pro subscribers can find the stock picks here.

— Amala Balakrishner

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 22 points higher at 8,442, Germany's DAX up 26 points at 18,896, France's CAC 7 points higher at 8,244 and Italy's FTSE MIB up 64 points at 35,091, according to data from IG.

Earnings are due from Swiss Re, Zurich Insurance, Siemens, Deutsche Telekom, BT and EasyJet, among others. There are no major data releases.

— Holly Ellyatt