US open: Markets open lower amid rising tensions in Hong Kong

US markets opened significantly lower on Monday, amid an escalation in political tensions in Hong Kong.

Figures released on Monday showed that consumers spent 0.5% more in August, while the data for July was revised upwards, after initial reports last month had shown a 0.1% decline. Figures exceeded analysts’ median forecast of a 0.4% rise.

Analysts suggested that the increase in spending confirmed that consumers were less intent on saving, an indication of their growing confidence in the current economic climate.

A further report, published by the National Association of Realtors, showed contracts to purchase previously owned properties declined in August, as limited wage growth and tighter credit weighed on potential buyers.

More economic data will be released over the next five days, with US figures on employment and output from the manufacturing and services industries due out this week.

In corporate news, Apple dropped 1.5% after news emerged that the European Union will probe the company’s tax breaks in Ireland, while Civeo plummeted after the provider of workforce accommodation said it will relocate in Canada and it expects 2015 revenues and margins to be “materially lower” than in 2014.

Athlon Energy soared after news that Encana had agreed a takeover worth $7.1bn, while DreamWorks Animation rose significantly, following reports that Tokyo-based Softbank had made a $3.4bn offer for the group, valuing the shares at $32 each.

The price, first cited by a report in the Hollywood Reporter on Saturday, would represent 43% premium on the stock’s closing price on Friday.

The 10-year US Treasury note yield dropped four basis points to 2.49%, while the five-year note yield lost three basis points to 1.77% and the 30-year bond declined by another four basis points to 3.169%.

The dollar fell against the pound, euro and yen, while gold added $5 and traded to $1,220.3 an ounce, while West Texas intermediate crude lost 0.33% to $93.23 a barrel.