European stocks led the first decline in the last three days after the sales wave of industrial metals put pressure on the mining stocks. The terrorist attack, took place in London at the weekend, did not put the sterling under pressure, and it gained strength by taking back the pre-election loss this week.
Mining sector stocks were the most lost group in the Stoxx Europe 600 Index after pushing down zinc and tin milling metals. US Treasury bond interest increased from its lowest level since last November. The Mexican peso has risen to its highest level in seven months, after the party of President Eduard Pena Nieto won local elections in an important province of the country. Oil gained value in the Middle East due to tension among some producers, but it didn’t last long and it gradually returned its gain.
Saudi Arabia, Bahrain, the United Arab Emirates and Egypt have cut air and sea relation with Qatar, by accusing Qatar about helping terrorist groups aiming at destabilizing the region.
The recently announced data in the US has caused to test the efficiency and sustainability of the current global growth rate that helped to boost the total value of stocks across the globe by more than $ 10 trillion in the past year. The World Bank has raised its growth forecast slightly, despite growing uncertainty about monetary policy and growing concern among bond traders as inflation weakens.
What will the important events of this weak will bring to the markets? Former FBI Director James Comey will speak at the US Congress after the US President Donald Trump removed him from office.
In the UK voters will go to the polls on Thursday. Surveys conducted over the last few weeks indicate that race continues at breakeven showing that the majority that the Prime Minister Theresa May hopes to have in under danger.
Central banks in India and Australia will announce policy decisions this week. On the other hand, foreign trade and inflation rate in China, factory orders in the US, industrial production in Europe and GDP in Australia, Japan and Euro Zone will be announced.
West Texas Oil (WTI) fell 47 percent to $ 47.57 per barrel, down 0.2 percent after dropping 1.5 percent on Friday. Gold, rose 0.1 percent to 1,280.07 dollars per ounce. Tin dropped 0.6 percent on the London Metal Exchange (LME) to $ 20,170 per ton, while zinc plunged 1.3 percent to $ 2,496.50 per ton.
The Bloomberg Dollar Spot Index, showing the course of the US currency against 10 major currencies, decreased 0.1 percent after falling 0.4 percent on Friday. The yen has fallen 0.2 percent against the dollar to 110.59. The Japanese currency gained 0.9 percent on Friday after the declaration of the US data about employment. Sterling reversed early losses against the dollar and rose 0.1%. Against the dollar, the euro dropped 0.3 percent to 1.1247.
10-year US Treasury yields rose 2.1 percentage points from a year earlier, after dropping five base points on Friday while UK benchmark yields rose three basis points.
Stoxx Europe 600 Index fell 0.1 percent due to 0.7 percent drop in raw material producers. In Qatar, the Doha Stock QE Index has made the most severe decline since December 2009 with 7.3 percent. Standard & Poor’s 500 (S & P 500) index futures contracts fell below 0.1 percent. The benchmark index rose 0.4 percent on Friday.
In Japan, the Topix Index fell 0.1 percent on Friday after seeing its highest level since August 2015. In China, the Shanghai Composite Index fell 0.5 per cent, while Taiwan’s Taiex Index rose 0.7 per cent and the Malaysian index rose 0.7 per cent.