Risk-aversion grips US markets, major indices open sharply lower

Risk-aversion gripped global markets, with major US equity indices opening sharply lower on Monday ahead of the first US Presidential debate between Democratic nominee Hillary Clinton and her Republican rival Donald Trump.

At opening trade, the Dow Jones Industrial Average dropped over 140 points to 18,117, the S&P 500 index was down nearly 15 points to 2150 and the Nasdaq Composite lost 40 points to 5,265.

Focus would also be on an important meeting of major oil producers at the sidelines of an energy conference in Algeria on Wednesday as investors remained skeptic that OPEC and non-OPEC oil producers will make a progress towards reaching a deal on freeze their output. 

On the US economic data front, new home sales for August contracted less-than-expected and came-in at 609K as compared to 600K expected and July's 659K. Next in focus would be speeches by Fed Governor Daniel Tarullo and Dallas Fed President Rob Kaplan later during the day and would be looked upon for fresh clues over the Fed's monetary policy outlook.

In other markets, the US Dollar traded weaker, assisting gold to hold with minor gains near 2-week highs, while oil prices reclaimed $45.00 handle and traded with strong gains of over 2.0%.