Global News
In Asia stocks fell on Monday while the dollar decreased as investors took profits from the currency’s recent gains ahead of central bank meetings in the United States and Japan this week. The Shanghai Composite Index was down 1.2 %.
In Currency Markets the yen hit a three-week low on Monday on expectations the Bank of Japan could start lending to banks at negative rates, while sterling hit a five-week high in reaction to President Barack Obama urging Britons to stay in the European Union. Against the yen, the dollar fell 0.6 % to 111.12 yen. The British pound last traded at $1.4430, up 0.2 % from late last week. The pound hit a six-week high against the euro of 77.52 pence per euro. The euro added 0.2% to $1.1245.
Oil prices fell over 1 % as traders took profits after three weeks of gains and as a jump in the dollar late last week was priced into fuel markets. Front-month Brent crude was trading at $44.61 per barrel down 1.1 %. U.S. West Texas Intermediate futures were down 1.4 %, at $43.11 a barrel. Monday’s oil price decline came despite another cut in the U.S. rig count that brings activity down for a fifth straight week and to levels last seen in November 2009.
In the US stocks finished flat on Friday after disappointing quarterly reports from Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) slammed tech stocks, while a rise in oil prices lifted energy stocks. The S&P 500 finished flat at 2,091.58. Microsoft lost 7.17% and Google-parent Alphabet lost 5.41% as investors punished both companies for missing profit and revenue estimates. Starbucks (NASDAQ:SBUX) fell 4.88% after missing sales expectations, while Visa (NYSE:V) lost 2.08% after it cut full-year revenue forecast.
Today’s economic events
GE 10:00: Apr IFO Business Climate, exp.: 107
GE 10:00: Apr IFO Current Assessment, exp.: 113.8
GE 10:00: Apr IFO Expectations, exp.: 100.9
UK 12:00: Apr CBI Trends Total Orders, exp.: -17
UK 12:00: Apr CBI Trends Selling Prices
UK 12:00: Apr CBI Business Optimism
US 16:00: Mar New Home Sales, exp.: 520K
US 16:00: Mar New Home Sales MoM, exp.: 1.6%
US 16:30: Apr Dallas Fed Manf. Activity, exp.: -9
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