WORLD HEADLINES – The pound is weakening anew, bond yields are falling to records around the world, and both stocks and commodities are starting to move lower. It all adds up to a gloomy outlook for the global economy as trading picks up after the Fourth of July holiday in the U.S.
STOCKS – The MSCI All-Country World Index dropped 0.4 percent during London, its first slide in more than a week.
BONDS – The yield on Treasury 10-year notes slid seven basis points to an unprecedented 1.3750 percent. The securities are rallying as futures indicate that the chance of the Federal Reserve raising interest rates this year has dwindled to 12 percent.
COMMODITIES – Precious metals declined as the dollar snapped five days of losses. Oil extended losses, dropping to a decline of 2.6 percent relative to Friday’s close.
CURRENCIES – Australia’s dollar fell 0.5 percent, after climbing 1.2 percent over the last two sessions.
ECONOMIC DATA – US Factory Orders m/m due at 10:00, GDT Price Index (tentative), FOMC Member Dudley Speaks at 14:30 ET.