Asian stocks are ready to open lower as risk appetite in Europe wanes as Italy staggers to new elections. Oil has hit the longest series of losses in more than three months as Saudi Arabia and Russia are considering raising production.
Futures were lower in Japan and Australia as the continental European stocks closed lower. Italian stocks collapsed as populist leaders turned their attempt to form a government on their heads and headed for new elections in the fall. The bonds of the nation fell as well. US equity futures jumped as the summit from America to North Korea seemed back on track. Dealers in the US and UK were vacated on Monday for vacations. The dollar rose to more than five months and the euro weakened. Treasury futures rose amid the risk averse sentiment.
Investors have come to the fore with geopolitics this week. US negotiations with North Korea have proved unpredictable, and while the failure of Italy's populist leaders to form a government precludes a threat to the Eurozone for the time being, there is a possibility that it could consolidate power in a follow-up election.
"We may experience a prolonged period of heightened uncertainty before new elections," said Ray Attrill, director of foreign exchange strategy at National Australia Bank Ltd., Sydney.
Elsewhere, the Turkish lira was outstanding after the central bank took steps to simplify its monetary policy Gold fell.
Many Southeast Asian markets are closed for holidays on Tuesday, including Indonesia, Malaysia, Singapore and Thailand.
Terminal users can read more in Bloomberg's Markets Live blog.
These are some key events to Watching this week:
- EU trade chief Cecilia Malmstrom and US Commerce Secretary Wilbur Ross will meet on Wednesday for an informal meeting of the World Trade Organs Meeting in Paris
- The US employment report for May is due for Friday. It is the last one before the Fed meeting in June.
- Automobile manufacturers report US sales the same day.
- Also Friday: China's stock market joins the global indices of MSCI Inc. On Saturday, US Secretary of Commerce Wilbur Ross will hold talks with Deputy Prime Minister Liu He on topics such as ZTE Corp.
- and trade travel to Beijing.
These are the main movements in the markets:
- Nikkei 225 futures fell in Singapore by 0.3 percent.
- S & P / ASX 200 fell 0.2 percent.
- The Stoxx Europe 600 Index fell 0.3 percent.
- Italy's FTSE MIB Index fell 2.1 percent.
- Futures on the S & P 500 Index rose 0.2 percent.
- The Bloomberg Dollar Spot Index climbed 0.1 percent to its highest level in more than five months [19659013DerEurofielum02percentto1163DollestWestsideFastTwoMonths
- The British pound gained less than 0.05 percent to 1.3311 dollars.
- The Japanese yen was $ 109.41 per dollar in early Asian trade.
- The Turkish lira climbed 2.7 percent to 4.5875 per dollar, the largest increase in more than two years.
- The German 10-year yield fell by six basis points to 0.34 percent, its lowest level in more than five months] Italy's ten-year yield rose 22 basis points to 2.684 percent, the highest in nearly four years biggest rise in more than two years.
- West Texas Intermediate crude fell 1.4 percent to $ 66.47 a barrel, reaching its lowest level since April in its fifth consecutive decline.
- Gold fell 0.1 percent to $ 1,297.57 an ounce, falling for the third straight day.