U.S. stocks closed lower Monday as concerns over Deutsche Bank's financial condition and the U.K.'s plan for exiting the European Union outweighed stronger-than-expected manufacturing data. Some analysts said that a report on U.S. manufacturing activity, which showed a shift back into expansion territory, might have heightened concerns that the Federal Reserve might raise interest rates sooner rather than later. "The ISM number was good but it's only one data point among many to consider and investors are eager to see September's employment report due on Friday," said Eric Wiegand, senior portfolio manager at U.S. Bank's Private Client Reserve.
Asian stock markets were mostly higher Tuesday as concerns about Deutsche Bank's financial health eased and Japan's quarterly survey showed companies lowered their inflation outlook. The Bank of Japan's quarterly Tankan business sentiment survey showed that Japanese companies expect consumer prices to rise 0.6 percent in the next year, lowering their inflation outlook, according to Kyodo News. That means that the central bank would have to do more to achieve its 2 percent inflation goal.
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