Global stocks struggle for momentum

World stocks started the week on the backfoot on Monday, slipping to 2-1/2 week lows on further signs of accelerating inflation as well as tax and regulatory pressures on the world's biggest companies.

Equity markets are down so far in September after a seven-month winning streak, pressured by inflation which may prove less transitory than flagged by central bankers, persistent and signs that governments are keen to get more tax from companies and to make them toe a stricter regulatory line.

After Wall Street's worst run since February, futures , hint at a firm opening and European shares also rose (.STOXX). However, MSCI's world stocks benchmark slipped 0.2 per cent (.MIWD00000PUS) and an index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) lost 1.2 per cent.

The latest source of worry is a Financial Times report that Beijing is aiming to break up Alipay, the payments app owned by Jack Ma's Ant Group (688688.SS).

The report, which pushed the Chinese blue-chip index (.CSI300) 0.5 per cent lower, shows there may be no let-up in the regulatory clobbering Chinese firms have received this year.

It follows a Friday court ruling on Apple (AAPL.O) that hit the iPhone maker's shares, while more reports emerged at the weekend that US Democrats are mulling proposals to increase taxes on corporations and the wealthy.

"We will see more of the state finding ways to extract funding from those it deems most capable of providing it," said Tom O'Hara, portfolio manager at Janus Henderson.

Adding to concerns is the continued acceleration in inflation, with Japan reporting wholesale prices at 13-year highs last month. That comes on top of data showing factory gate inflation at more than decade-highs in the US and China.