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Top 4 things you need to know about the market on Monday
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Loading...1. U.S Futures set to open lower
Wall Street will open the week cautiously. At 12:30 (GMT +3), the S & P 500 futures contract fell by 4.6 points or 0.2 percent, and the Dow futures contract fell by 57 points, or 0.2 percent, while the technology index Nasdaq 100 declined by 14 points, also dropping 0.2%.
Without clear progress in trade talks between the US and China, the market will look at the start of the earnings season with tremors, as a quarter of the worst-than-expected economic data is reflected in individual revenue stories.
2. Bonds stable after the NFP
Bond markets stabilized as a result of the positive labor market report on Friday, which showed employment growth above expectations and a slight drop in wages. The 10-year Treasury Bond yield is just below 2.50% against the background of rising expectations that the Federal Reserve may lower interest rates later this year.
The Federal Reserve is under pressure from President Donald Trump to cut interest rates and resume its bond purchase program. It could be pressured by other parts of Washington later this week when the International Monetary Fund and the World Bank spring meeting. The IMF's update of the global economic outlook is likely to reflect declining growth projections worldwide.
3. Deadline for Brexit
This week is really time for Brexit's contention. In its current form, Britain should leave the EU without any transitional arrangements Friday at midnight.
But it does not have to come to that. Prime Minister Theresa May has already asked for further extension until June 30, and some in the EU want a longer deadline - something that will give time for a thorough rethinking of future relations.
May signaled over the weekend that she had abandoned her attempts to get parliament to approve the withdrawal agreement. Her talks with the opposition party over the weekend aimed at finding a cross-party solution did nothing.
4. Oil at new highs on Libya turmoil
Crude oil prices hit another new peak for the year, following signs of mounting violence in OPEC membership in Libya, fueling fears that war-torn country might end up with another delay in exports.
The base WTI futures contract reached a 5-month high of $ 63.53 a barrel earlier. It maintains this level due to Saudi oil minister Khalid al-Falih's comments that world oil reserves are still clearly above their five-year average, suggesting a desire to extend the current agreement by continuing to reduce yields.
Trader Milko Zashev Read more:
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