Financial markets fall into Monday rut
If things continue like this, investors will have to start calling the start of the week “mopey Monday.”
Financial markets are once again heavy with worry as concerns that the U.S. economy will take longer to emerge from the current doldrums are front and center. Even the stronger-than-expected activity in the U.S. services sector couldn’t lift investor spirits. The terrible U.S. jobs report released last Thursday is most likely still contributing to the market blues as is the end of the July 4th holiday weekend in the U.S., but I have to think that there’s a deeper ennui afflicting investors.
If stocks close down on this Monday, it will make three times over the last four Mondays that the Dow Jones Industrial Average and the S&P 500 have retreated
On this particular Monday, the Dow is struggling to get out of the red while the S&P 500 still off modestly, down 0.15%. Other indicators are down in the dumps, too. Gold was down $9 to $923.4 per once, while oil fell more than 3% to trade under $65 a barrel.
During summer, many market participants chose to extend their weekends into Monday. For those manning the trading desks, this can lead to boredom and, during uncertain times as these, dark thoughts.
Don’t despair though. There’s a host of events slated for later in the week that promise to break the boredom, though it remains to be seen if they can restore the optimism. Second quarter earnings kicks off in the U.S. with Alcoa reporting this week, Australian and British central banks will weigh in on monetary policy and the G8 will meet in Italy on July 8-10 and possibly discuss an alternative to the dollar as the world’s reserve currency.