European and Asian stock markets traded mixed Monday following a pre-weekend retreat on Wall Street as investors scaled back bets on US interest-rate cuts, fearing Donald Trump’s policies could reignite inflation.Global equity markets have cooled since Trump’s US election win this month, while investor attention has turned to his upcoming pick for Treasury secretary.All three main indices on Wall Street ended deep in the red Friday, with the Nasdaq down more than two percent, after Federal Reserve boss Jerome Powell signalled a slower pace of interest rate cuts.US inflation is proving sticky even before any potential uplift to prices once Trump re-enters the White House.The dollar was mixed against main rivals Monday.The Fed’s next policy decision in December will be closely followed for an idea about officials’ plans.”Although the markets are still pricing in a cut for December, the rate of reductions for next year has now slowed significantly,” said Richard Hunter, head of markets at Interactive Investor. Expectations that a second Trump administration will impose painful fresh tariffs on Chinese goods has added to the unease and ramped up fears of another trade war between the economic powerhouses.”It is likely that if Trump does proceed with tariffs on Chinese goods, they will respond aggressively,” said Kathleen Brooks, research director at traders XTB.European markets struggled for direction Monday before eurozone and UK inflation data this week which will help gauge the outlook for local interest rates.The vice president of the European Central Bank said Monday that Trump’s spending plans risked inflating the US government’s budgetary deficit and spreading worries on markets. “Trade tensions could rise further,” with resulting risks for economic activity, Luis de Guindos noted.Eyes this week will be on also the release of flash purchasing managers’ index data for signals about the health of business activity in the eurozone, Britain and United States.Friday’s PMI data “may capture some of the initial sentiment impact from around the world regarding Trump’s victory,” said Jim Reid, economist at Deutsche Bank.”Europe will be especially interesting on this front as the continent awaits their trade fate,” he added.In Asia on Monday, Tokyo and Shanghai stock markets closed lower and Hong Kong rose.Shares in Hong Kong were helped by hopes for more Chinese stimulus after a recent raft of measures, while a call by authorities for firms to step up efforts to boost shareholder returns also provided support.Bitcoin sat around $91,900, having hit another record high of $93,462 last week on hopes Trump would push for more deregulation of the crypto market. Dealers were awaiting the release of earnings from chip titan Nvidia Wednesday, after the US firm led a tech surge this year owing to an explosion in demand for all things linked to artificial intelligence.- Key figures around 1100 GMT -London – FTSE 100: UP 0.3 percent at 8,086.21Paris – CAC 40: FLAT at 7,271.54Frankfurt – DAX: FLAT at 19,204.53Tokyo – Nikkei 225: DOWN 1.1 percent at 38,220.85 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,576.61 (close)Shanghai – Composite: DOWN 0.2 percent at 3,323.85 (close)New York – Dow: DOWN 0.7 percent at 43,444.99 (close)Euro/dollar: UP at $1.0547 from $1.0536 on FridayPound/dollar: UP at $1.2621 from $1.2611Dollar/yen: UP at 155.04 yen from 154.32 yenEuro/pound: UP at 83.54 pence from 83.52 penceBrent North Sea Crude: UP 0.8 percent at $71.59 per barrelWest Texas Intermediate: UP 0.7 percent at $67.46 per barrel

Asian markets were mixed Monday following a sell-off on Wall Street as investors scale back their bets on Federal Reserve interest rate cuts owing to worries Donald Trump could reignite inflation.A warning from US central bank boss Jerome Powell that reductions in borrowing costs were not preset dented optimism last week, while traders were also keeping tabs on the president-elect’s cabinet choices, with several China hawks lined up.Expectations that a second Trump administration will impose painful fresh tariffs on Chinese goods has added to the unease and ramped up fears of another trade war between the economic powerhouses.All three main indexes on Wall Street ended deep in the red Friday, with the Nasdaq down more than two percent, after Powell’s remarks the day before.After Trump’s victory at the start of the month, markets had already been winding back their expectations for the number of rate cuts the Fed would announce next year.The bank’s next policy decision in December will be closely followed for an idea about officials’ plans.Still, Philipp E. Bartschi, chief investment officer at Bank J. Safra Sarasin, was upbeat about the outlook for equities.”The clear and swift outcome of the US elections reduced uncertainty and investors’ appetite for risk improved significantly,” he said in a note. “This trend is likely to continue in the coming weeks and ensure a positive year-end on the financial markets.”With the election of Donald Trump as US president, the volatility in macro forecasts is likely to increase due to his plans. Deregulation and tax cuts would accelerate nominal growth, while a trade war should slow growth. “Although many of Trump’s proposals will only have an impact after a delay — if at all — consumer sentiment and the business climate are likely to improve in the short term. A possible US recession has receded into the distant future.”Shares in Hong Kong were helped by hopes for more Chinese stimulus after a recent raft of measures, while a call by authorities for firms to step up efforts to boost shareholder returns also provided support.Sydney, Seoul, Wellington, Manila, Mumbai and Bangkok also rose along with London, Paris and Frankfurt.However, Tokyo, Shanghai, Singapore, Taipei and Jakarta fell.The lowering of US rate cut expectations helped the dollar hold onto gains against its major peers, with investors also tracking comments from Japanese authorities amid speculation they could intervene in forex markets if the yen weakens too much, too quickly. And bitcoin sat around $91,600, having hit another record high of $93,462 last week on hopes Trump will push for more deregulation of the crypto market. Commentators expect the unit to break $100,000 soon.Dealers were also awaiting the release of earnings from chip titan Nvidia this week, after the firm led a surge in tech firms this year owing to an explosion in demand for all things linked to artificial intelligence.- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 1.1 percent at 38,220.85 (close)Hong Kong – Hang Seng Index: UP 0.8 percent at 19,576.61 (close)Shanghai – Composite: DOWN 0.2 percent at 3,323.85 (close)London – FTSE 100: UP 0.2 percent at 8,077.36Euro/dollar: UP at $1.0548 from $1.0536 on FridayPound/dollar: UP at $1.2627 from $1.2611Dollar/yen: UP at 154.52 yen from 154.32 yenEuro/pound: UP at 83.54 pence from 83.52 penceWest Texas Intermediate: UP 0.3 percent at $67.20 per barrelBrent North Sea Crude: UP 0.4 percent at $71.31 per barrelNew York – Dow: DOWN 0.7 percent at 43,444.99 (close)