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European equities and US stock futures collapsed with Asian stocks as markets extended an unfortunate start to the week. The dollar strengthened for a third day.
Automotive and chemical decision makers lowered the Stoxx Europe 600 Index after BASF SE issued a profit warning, beating the forecast for 2019 "mainly due to trade conflicts", while S & P 500 futures pointed to a third rate of decline that investors expect more clues on the road to US monetary policy. Shares reversed gains in Japan, fluctuated in South Korea and saw modest slides in Hong Kong and China.
Trade can continue to be choppy rather than important testimonials this week by Federal Reserve Mayor Jerome Powell as investors considering prospects to look for conflicting signals on the world economy. Treasures went down while gold and yen both went on a fourth day. Italian bonds raised the trend, rising as the country utilized low borrowing costs to sell more debt.
Investors across both stocks and bonds are struggling to find fresh reasons for chasing this year's rally. A Fed interest rate cut this month is already priced and recent financial data has been mixed, making the path for future policies less clear. All eyes will be on Powell's testimony of new clues to Fed's outlook.
"Market prices still look safe with a 25 basis point cut at the end of the month, but short-term positioning suggests a bias to look for a slightly less bold take from Mr. Powell," wrote Kit Juckes, a strategist at Societe Generale SA. , in a note. "The debate is not about whether the prices are cut once, but about what happens later in the year."
Older places became the WTI oil higher after a previous fall that traders weighed geopolitical tensions with a slowing global economy. Bitcoin rose for a second day, which led to the digital token gain this week at about 14%, and Australia's dollar fell for a fourth increase after private business and consumer confidence was reduced.
The pound weakened as economists predicted Britain's economy likely to shrink for the first time since 2012 in the second quarter. Hong Kong's dollar deep as the city's leader Carrie Lam said a controversial bill that allowed extradition to China was "dead," but stopped briefly to say she would withdraw the law after weeks of protests.
Here are some important events that come up:
United Kingdom Conservative party members have begun to vote to elect Theresa May successor. Frontrunner Boris Johnson and Jeremy Hunt will appear on events throughout the week, including a television debate on July 9. The fund's reserve chairman Jerome Powell testifies before the Monetary Policy and State Treasury on Wednesday (House of Representatives) and Thursday (Senate). Fed minutes are due on Wednesday, ECB protocols on Thursday. An important measurement of US inflation-core consumer price index, due to Thursday, is expected to have risen by 0.2% in June from last month, while the wider CPI is expected to remain unchanged.
Here are the key features of the markets:
Futures on the S & P 500 index went down 0.5% from 9:22 am in London time, against the biggest decline in two weeks. The Stoxx Europe 600 Index fell 0.7%, the lowest for more than a week. The UK's FTSE 100 index fell 0.2%, the lowest for more than a week. Germany's DAX index fell 1.2%, the largest decline for more than five weeks. The MSCI Asia Pacific Index fell 0.4% to 158.68, the lowest within nearly three weeks.
The British pound fell 0.4% to $ 1,246, the weakest for more than two years. The euro declined 0.1% to $ 1.1201, the weakest for three weeks. The Japanese yen died 0.1% to 108.82 per dollar, the weakest in nearly six weeks.
The yield on 30-year government bonds climbed less than one basis point to 2.53% .Germany's 10-year return increased less than one basis point to -0.36%, the highest for more than a week. s 10-year return was unchanged at 0.715%.
West Texas Intermediate Crude reduced 0.5% to $ 57.39 per barrel, the first retreat in a week. Gold fell 0.2% to $ 1.392.48 an ounce, the weakest for more than a week. Irronmalm increased 3.5% to $ 116.30 per tonne.
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