According to the news report by Bloomberg, the US stock-index futures fell during Monday’s trading and Asian stocks showed mixed results as the Easter weekend celebrations continued in numerous countries.
The price of oil jumped up on reports that the United States was scrapping waivers that allowed the purchase of Iranian crude oil.
The futures contracts on the S&P 500, the Dow Jones Industrial Average and Nasdaq Composite all declined when markets opened, however, trading was muted as the Easter holiday continued for most European countries.
Chinese stocks as well as bonds in Asia also dropped as investors bet that future stimuli would be limited. Japanese shares showed mixed results, swinging between losses and gains, but finally closed slightly higher by the end of the trading day.
In the Sri Lankan stock markets, bonds and the country’s currency, the rupee fell after the terror attacks on Sunday.
The US dollar stayed steady as did the Treasuries.
As the corporate financial reporting season remains in full flow, investors are assessing whether the world’s central banks’ policy stances will be able to buffer possible reductions in corporate earnings.
The stock market seems to indicate positive moves in that direction, with the MSCI gauge of equities across the world showing gains for the fourth straight month.
This week is expected to be full of corporate earnings reports releases, including the big technology companies. Amazon.com Inc., Facebook Inc., Twitter Inc. and Microsoft Corp. are among the technology giants that are to release their reports this week.
In the financial sector, European banks such as Deutsche Bank, Barclays, UBS, Swedbank and Credit Suisse are expected to report their earnings this week.
The Bank of Canada, the Bank of Japan, the Bank of Russia, Riksbank of Switzerland and the Bank of Indonesia are expected to release their monetary policies this week.
IFO data from Germany is expected this week too.
The biggest focus this week, however, will be on the American economy, with the Quarter 1 GDP (gross domestic product) report due to be released on Friday. Investors are looking for clues as to how the US economy has responded to the government’s shutdown earlier this year, and how the market rout in the fourth quarter impacted it.
Here is an overview of the global markets’ performance today:
- The S&P 500 futures contracts dipped by 0.3%.
- The MSCI Asia Pacific Index dropped by 0.1%.
- The Shanghai Composite Index dropped by 1.7%, which is the biggest fall the index has experienced in the last 3 weeks.
- The Korean Kospi Index went up by less than 0.05%.
- The MSCI Emerging Market Index dropped by 0.2%.
In currencies, the Bloomberg Dollar Spot Index went up by less than 0.05%. The Yuan (offshore) fell by 0.1%. The MSCI Emerging Markets Currency Index also dropped by 0.1% and the Euro/Swiss legal tender went up by 0.1%.
In bonds, the 2-year Treasuries yield went up by less than a basis point to 2.38%. The 10-year Treasuries yield also gained, but by 1 basis point to 2.57%. The Japanese 10-year yield dropped by less than a basis point to -0.031%.
In commodities, the price of gold went up by 0.3% to trade at $1,279.22 per ounce. This is the precious metal’s largest advance in over a week. The West Texas Intermediate, the American benchmark for crude oil, jumped 2.3% to trade at $65.49 per barrel. This is its biggest jump in over 2 weeks.
LME Copper saw a drop in its price by 1.2%, which is the largest drop the metal has seen in nearly 4 weeks.
The price of iron ore went up 2.5% to trade at $91.45/metric ton, which is the biggest jump in over a week.