Chinese deflation throws cold water on equities race. Pound below $1.28 ahead of Q3 GDP release.

The US equity futures kicked off the week on a negative note, as well. The S&P (-0.28%), the Dow (-0.33%) and Nasdaq (-0.29%) futures edged lower on haunting economic slowdown worries amid Chinese deflation, and perhaps the realization that the stock prices may have raced to uncharted territories on illusion of a better future.

Still, the prospect of a partial trade deal between the US and China should lend support to any sell-off that hasnt been triggered by a trade-related disappointment. US President Trump said that trade talks are developing very nicely.

Gold rebounded after hitting $1456 an ounce on Friday. Improved sovereign yields will likely cap gold purchases below $1477, the 100-day moving average.

Japanese stocks traded flat-to-negative in Tokyo.

UK and European equity markets are poised for a soft start.

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Opening calls

FTSE to open 3 points lower at 7356

DAX to open 17 points lower at 13212