Japanese stocks rallied the most this year, leading Asian markets higher as the region played catch-up with Friday's rally. In Europe, stocks were trading lower Monday morning as SAP cut its earnings outlook.
Here are five things that matter for markets now:
- German software giant SAP cut its earnings forecast as customers moved to applications delivered via the cloud. SAP is the world's biggest producer of business software and the result spooked stock markets in Europe. It cut its operating profit forecast for this year to a range of between 5.6 billion euros ($7.14 billion) and 5.8 billion euros from previous forecasts of as much as 6 billion euros.
- Eric Rosengren, president of the Boston Fed, said the Fed should end quantitative easing as scheduled this month, unless something dramatic happens. Rosengred made these remarks in an interview with the FT. He also said that QE has achieved its purpose of strengthening the economy and labor markets and that uncertainty is too high to warrant firm forward guidance.
- The U.S. air-dropped weapons and supplies to Kurdish fighters near the Syrian city of Kobani. The city is situated near the Turkish border and has been the scene of fierce fighting between Islamist militants belonging to Islamic State and the Kurds.
- Weak demand in big emerging markets such as Russia and China has pushed Dutch company Philips to a loss in the third quarter.
- Russia's ruble tumbled after Moody's cut the country's credit rating to the second-lowest level of investment grade. This was triggered by the economic weakness in the wake of Western sanctions due to Russia's annexation of the Ukrainian region of Crimea. The outlook is negative.