(Adds Europe open, pound move, chart)
* European stocks open higher, FTSE helped by weak pound
* Pound down 0.5% as no deal Brexit risks rise
* Japan's Nikkei falls, Chinese shares in red
* Currency market action muted
* Oil falls 1.2% after Saudi price cuts
By Thyagaraju Adinarayan and Swati Pandey
LONDON/SYDNEY, Sept 7 (Reuters) - World shares rose slightly
on Monday after losing $2.3 trillion in the last two sessions in
a technology stocks led rout as investors reassessed soaring
valuations when the global economy is in a coronavirus-induced
recession while oil prices dropped.
European stocks, which have fewer technology stocks compared
to the United States, started the week in the black driven by a
1.2% gain in Germany's Dax .GDAXI and London's export-heavy
FTSE 100 .FTSE
UK stocks, meanwhile, were helped by a falling pound with
Brexit talks plunging into crisis following Britain's threat to
override its EU divorce deal. Sterling GBP=D3 fell around half
a percent against the dollar and euro on Monday.
"It is almost inevitable that the perceived probability of
'no deal' will escalate over the coming weeks," Goldman Sachs
analysts wrote in a note.
Markets activity was likely to remain subdued on Monday with
the U.S. closed for the Labour Day holiday.
But the snap Wall Street crash late last week looked far
from over with E-Mini futures for the S&P 500 ESc1 slipping
0.5% and Nasdaq futures NQc1 down 1.3%.
The exclusion of Tesla TSLA.O from a group of companies
that were being added to the S&P 500 weighed on the electric car
maker's Frankfurt-listed shares, which were last down
3%. World shares .MIWD00000PUS were up 0.2%. They had hit a
record high last week as central bank stimulus drove asset
valuations to heady levels, but the rally has since cooled as
tech stocks sold off while worries over patchy economic recovery
dogged investors.
Sharp sell-offs have recovered quickly in recent months
though analysts expect further downside to this leg due to
rising cross-asset volatility .VIX .
"Our risk indices have begun to turn from their euphoria
highs," Jefferies said, adding that it was switching its
weighting on MSCI All World index to "tactically bearish" in the
short term.
"On the balance of probabilities, last week's correction has
further room to go."
In Asia, China's blue-chip index .CSI300 slipped 2.3% on
Monday as possible blacklisting of China's largest chip maker,
Semiconductor Manufacturing International Corp 0981.HK (SMIC),
hit tech firms across the board. MOOD
The mood across Asian markets was tentative. MSCI's broadest
index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was
last down 0.2% after two straight days of losses toppled it from
a 2-1/2-year peak last week.
Data earlier on Monday showed Chinese imports fell 2.1% in
August from a year earlier, confounding expectations for a 0.1%
increase, in a sign of sluggish domestic demand. Exports jumped
by a larger-than-expected 9.5%.
Japan's Nikkei .N225 fell 0.5% with SoftBank 9984.T
coming under heavy selling following media reports it has spent
at least $4 billion buying call options on listed U.S.
technology stocks. In currency markets, the dollar steadied in holiday-thinned
trade on Monday, while traders shifted their focus to the
European Central Bank's meeting on Thursday. Most analysts don't
expect a change in policy stance.
The message the ECB will deliver on its inflation forecasts
is likely to set the direction for the euro, which has surged in
the past few months.
The dollar was flat against the yen at 106.28 JPY= ahead
of a heavy week of macroeconomic data with figures on household
spending, current account and gross domestic product due on
Tuesday.
In commodities, oil prices hit their lowest since July,
after Saudi Arabia made the deepest monthly price cuts for
supply to Asia in five months. U.S. crude CLc1 fell 1.26% to
$39.19 a barrel. Brent crude LCOc1 skidded to $42.11. O/R
Fading optimism about a recovery in demand amid the
coronavirus pandemic also hung heavy.
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Tech rout wipes off $2.3 trillion from World stocks https://tmsnrt.rs/2R2KZyk
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