The risks in Europe pressurize the interest rates, while oil and gold have retreated in international markets.
Stocks in Europe lost weight as the investors have tended to be reminded that the world’s largest common market is still facing some problems. US oil prices, being involved in rising commodity sales, fell while the US traders continued their long week-end to return to the markets.
The Stoxx Europe 600 Index entered the fourth day of its decline with the data showing economic confidence in the Eurozone declined with the first fall in this year, and after the occurrence of pressure on the banks after Mario Draghi’s comments on the European Parliament. The inflation rate in Germany was slower than anticipated while the monarchs moved downward, valuing the view that traders would be the anticipated early election in Italy.
While global stock indicators refresh their records during the year, global growth winds continue to escalate and investor concerns are diminishing. The elections in England, Germany and Italy are approaching, Brexit negotiations begin, and the US President Donald Trump is increasing tension with Germany and Trump is struggling to put fiscal spending and tax restraint plans into effect.
Fed President of St. Louis, James Bullard announced that the new administration should meet expectations that support upwards stock markets in an interview with Bloomberg TV in Tokyo.
The euro rose 0.2% versus the dollar and rose to 1.1186 while Bloomberg Dollar Spot Index did not change much. The yen strengthened against the dollar by 0.5% to 110.754.
Stoxx Europe 600 Index fell 0.2 percent. The S & P 500 Index was down 0.1% at 14.34 in New York. The indicator led to its first loss at the end of eight days, following the longest rally since February.
Gold fell 1.265.50 dollars per ounce with a 0.5 percent decrease. West Texas Oil (WTI) fell 0.3 percent to 49.64 dollars per barrel. Oil prices have been fluctuating during the past week after OPEC and its allies agreed to extend oil restrictions by another nine months.
Treasury yields with 10-year maturities in the US declined 3 basis points to 2.22 percent. In Italy, benchmark interest rates increased 3 basis points after a 7-basis point increase on Monday.
What will happen next?
The data to be released this week in the Eurozone could show the strongest economic confidence in the last 10 years. The leading headline the inflation data will be released on Wednesday.
Fed officials are coming up with new explanations on the verge of approaching the Federal Open Market Committee (FOMC) meeting on June 13-14. Lael Brainard and Robert Kaplan will speak in New York on Tuesdays and Wednesdays, respectively.
The non-agricultural employment data which will be released on Friday in the US could strengthen the floor for interest rate hikes. This data is expected to increase by 185,000.
According to economists, the Brazilian National Bank may increase its benchmark interest rate by 75 to 100 basis points from its current level of 11.25%, at the Wednesday meeting.
Manufacturing industry purchasing managers index (PMI), which will be announced on Wednesday in China, may show that economic growth may have reached the peak of growth in 2017.
Energy Information Administration (EIA) will announce its monthly supply report on Wednesday.