In European Equity Markets the pan-European Stoxx 600 fell below the flatline at the closing bell. Europe’s banking stocks led the losses, trading 1% lower after Deutsche Bank announced it would pull out of its global equities sales and trading operations, scale back its investment banking and slash thousands of jobs as part of a sweeping restructuring plan to improve profitability. The shares rose toward the top of the European benchmark shortly after the opening bell, before giving up all of its gains to slip toward the bottom of the index. Shares of Deutsche Bank ended the session 5% lower.
In Currency Markets the U.S. dollar rose broadly on Monday after strong U.S. jobs growth in June suggested the Federal Reserve will not aggressively cut interest rates later this month. The dollar index climbed to as high as 97.443 on Friday, its highest level since June 19, as U.S. Treasury yields rose across the board. Sterling fell to as low as $1.2481, its lowest since the “flash crash” on January 3 when the pound dropped to $1.2409. It last quoted at $1.2525. Against the yen, the dollar advanced to as high as 108.640.
In Commodities Markets oil prices firmed on Monday on tensions over Iran’s nuclear program but gains were capped by concerns about global economic growth and consequently oil demand. Brent crude futures rose 38 cents, 0.5%, to $64.61 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 47 cents, or 0.8%, to $57.98 a barrel. Iran on Monday threatened to restart deactivated centrifuges and step up its enrichment of uranium to 20% in a move that further threatens the 2015 nuclear agreement that Washington abandoned last year.
In US Equity Markets stocks fell on Monday, dragged down by losses in Apple and Boeing and as investors cut back bets of an aggressive interest rate cut by the Federal Reserve later this month. The S&P 500 was down 0.57%, at 2,973.44. The Nasdaq Composite fell 0.93%, at 8,085.73. Boeing Co’s shares fell 1.1% after Saudi Arabian budget airline flyadeal said it would not proceed with a provisional $5.9 billion order for the planemaker’s grounded 737 MAX aircraft, instead opting for a fleet of Airbus A320 jets.
In Bond Markets the U.S. Treasury yield curve flattened on Monday morning after stronger-than-expected employment data on Friday led traders to significantly reduce bets on an aggressive 50 basis point interest-rate cut in July. The yield on the benchmark 10-year note was last down 2.4 basis points at 2.020%, with the 30-year yield 3.3 basis points lower at 2.515%. The 10-year yield was just off its open a week prior, after rising on Friday following the employment report.