US. equities ended Monday little changed as declining oil prices pulled down energy stocks at the start of a busy news week.
Crude Oil slipped after U.S. drillers expanded operations while OPEC and Russia prepare to discuss longer supply curbs.
In political news, the U.S. Senate tax bill is set to be debated this week. President Donald Trump, tweeted yesterday that negotiations on the tax bill were coming along “very well”.
The most significant event today will likely be the Fed Chair nominee Jerome Powell’s confirmation hearing. The new Fed Chair has broadly conveyed a message of continuity, stating “we expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink”.
European stocks fell as defensive sectors such as real estate and utilities outperformed cyclical shares.
Over in Germany, progress to form the new coalition government appears to be heading in the right direction, leading to gains in German sovereign bonds.
In the UK, the Bank of England publishes annual stress tests Tuesday alongside its Financial Stability Review looking at the health of U.K. banks.
In Asia overnight, Japanese equities were unchanged, as the yen pared gains after a rally partly fuelled by a Kyodo News report that Japan detected radio signals suggesting North Korea is preparing for a missile launch.
Chinese equities gained 0.3%, despite news in the last week surrounding government concerns about a potential stock bubble. Chinese bond yields also soared toward 4% last week amid efforts by authorities to clamp down on leverage.