Stocks Lower Ahead of Brexit and ECB Risks This Week

World stocks faltered at six-month highs and U.S. markets were set to dip on Monday as flashpoints including a crucial Brexit summit and a European Central Bank meeting loomed and investors looked ahead to an earnings season that may be disappointing.

Signs of further stimulus from China helped Asian shares touch seven-month highs, but investors’ enthusiasm was fleeting.



MSCI’s world equity index inched up 0.1 percent, at six-month highs while European stocks slipped as weak data from Germany and investor caution ahead of a string of political and monetary policy events held the market back.

Futures for the S&P 500 and Nasdaq eased 0.1 percent, indicating a weaker start on Wall Street.

In a document published on the central government’s website late on Sunday, Beijing said it would step up a policy of targeted cuts to banks’ required reserve ratios to encourage financing for small and medium-sized businesses.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza