Traders will have their attention on the UK’s Autumn budget, which takes place on Wednesday.

The volume of retail sales last month fell 0.2% compared to August, marking the longest period of back-to-back monthly declines since records began in 1996, ONS figures show.

Following a 17-day suspension, the property development company nosedived as much as 14%.

The S&P 500 and Nasdaq gapped higher yesterday and closed strong, helped by robust earnings reports. This, coupled with TSCM earnings and Beijing easing mortgage lending, helped lift the MSCI Asia Pacific Index for the third consecutive session.

Investors seem undeterred by the firm oil and gas prices and have taken stocks and bonds higher today. Stronger risk appetites are also evident in the foreign exchange market, where the dollar is weaker against most currencies.

The US dollar is trading with a lower bias ahead of the September CPI report due early in the North American session. Long-term yields softened yesterday and slipped further today, leaving the US 10-year yield near 1.56%.

A weak close in US equity trading yesterday and the widening of China's "cultural revolution" for a two-month investigation of the financial sector stopped a three-day advance in the MSCI Asia Pacific Index.

There are several developments over the weekend, but the focus seems to be on central bank action, inflation reports by the US and China, and the start of the Q3 earnings season. Plus, good news out of Canada.

European stock markets were mixed on Monday after Bank of England officials hinted interest rates may rise by end of this year.

I think China will muddle through this immediate problem, but the risks are high enough to justify some preparation. Nor is financial contagion the only risk.