Bunzl Plc lost 2.6% after it admitted that global supply chain issues were impacting business in the United States, Britain, Mexico and Australia. Airlines stocks, such as IAG and Wizz Air are also a drag, after the European Union decided yesterday to remove the US from the EU's safe travel list after a rise in Covid cases.

After a long week-end prolonged by yesterday's bank holiday, investors continue to digest the words of Fed chair Jerome Powell at the Jackson Hole symposium on Friday, where he indicated to the Fed was getting closer to the start of tapering, but refrained from providing more details on the timing of these monetary policy changes. Traders will have their eyes on Friday’s US job data to get more clues on the Fed’s next move, since strong numbers would likely increase the chance of a timetable for reducing asset purchases after its next meeting on September 22.

In an interview with the Financial Times, the IMF’s chief economist Gita Gopinath warned about the risks to the global economy in case of a sudden move to tighten monetary policy. She said emerging countries could not afford a repeat of 2013’s infamous “taper tantrum”, when the bond market threw a big tantrum at the mention of a possible halt in asset purchases, causing a sharp rise in long-term rates.

Things to read:

DWS probes spark fears of greenwashing claims across investment industry (Financial Times)

US investors bank on derivatives to guard against stocks slowdown (Financial Times)

Cryptocurrencies Are Coming Back From the Brink. Here’s Why (Bloomberg)