US stocks began the week on a soft note as Technology shares extended recent losses. The S&P 500 settled 0.6% lower, with Technology stocks declining 1.8%.
Trade concerns also were in the spotlight following reports that several countries – Canada, the European Union, Japan, Mexico and South Korea – will meet next week to discuss a response to comments made by President Donald Trump about imposing tariffs on US auto imports.
Attention will turn today to the Federal Reserve’s latest monetary policy meeting. Consensus is expecting no near-term change to interest rates but will likely look for clues on the central bank’s path toward normalizing policy.
European equities also traded lower Monday. The Euro Stoxx 50 index fell 0.4%, the German DAX index lost 0.5% and the French CAC settled 0.4% lower.
In earnings news, Heineken shares declined 6.5% after reporting lower-than-expected results for its second quarter, cutting its margin outlook for the year.
Japanese shares closed marginally higher overnight following the Bank of Japan’s policy meeting decision to leave interest rates unchanged.
The Chinese manufacturing purchasing managers index – a gauge of manufacturing activity – declined to 51.2 in July from 51.5 in June, coming in marginally lower than consensus expectations of 51.3.