China boosts lending; H&M's digital push; Global stocks drop

A H&M store in New York City.

(CNN Business)1. China boosts lending: Chinese stocks dropped sharply Monday after China's central bank freed up 750 billion yuan ($109 billion) for new lending in an attempt to prop up economic growth.

The benchmark Shanghai Composite dropped 3.7% after being closed all last week for a public holiday. The Chinese yuan slipped 0.4% against the US dollar.
The Chinese economy has lost momentum this year following government efforts to try to rein in high levels of debt. It's also coming under pressure from US tariffs on more than $250 billion of Chinese exports.
Larry Hu, an economist at investment bank Macquarie, said the move by the central bank is "far from enough to turn the economy around" because banks may still be reluctant to lend. He said further stimulus was likely.
    2. H&M's digital push: H&M (HNNMY) is teaming up with Swedish fintech company Klarna to step up its online game.
    Critics say the Swedish retailer has been slow to embrace e-commerce, and weak sales in physical stores have caused alarm recently.
    H&M plans to apply Klarna's tech to payments made online, in stores and via mobile. The partnership may also help simplify the delivery and returns process.
    The financial terms of the deal were not disclosed, but H&M said it would take an equity investment in Klarna.
    3. Global market overview: US stock futures were pointing lower. Markets in Europe and Asia suffered losses.
    The VIX volatility index (VIX), which tracks short-term market turbulence, spiked 9%.
    US oil futures dropped over 1% to $73.60 per barrel after media reports indicated that the Trump administration is considering some waivers on Iran oil sanctions.
    The Dow Jones industrial average closed 0.7% lower on Friday, while the S&P 500 dropped 0.6%. The Nasdaq lost 1.2%, capping its worst week since March.
    4. Companies and economics: Shares in French Connection spiked 26% on Monday after the fashion retailer's board announced it was exploring a sale.
    The British Chambers of Commerce released a survey of 5,600 companies that shows the "UK economy is stuck in a rut." The lobby group said services firms are having the most trouble recruiting since the survey began in 1989.
      German industrial production was much weaker than expected in September, according to official data released Monday. Germany's DAX dropped 0.8%.
      5. Coming this week:
      Monday — US bond market closed for Columbus Day; Nobel Prize in economics announced
      Tuesday — Google hardware event
      Thursday — Delta (DAL) earnings; Walgreens Boots Alliance (WBA); Deadline for Sky shareholders to accept Comcast offer; Monthly OPEC report
      Friday — Citigroup (C), JPMorgan Chase (JPM), Wells Fargo earnings (WFC); US consumer sentiment for October