Investors' initial reaction to inflation data and the corporate earnings report to be published this week has caused global equities and US bond yields to decline.
Risk-off sentiment is seen returning to dominate the market as investors await the readings of the consumer price index, retail sales and the US producer price index this week.
It is expected to provide an overview of the current US inflation situation and the steps the Federal Reserve (Fed) will take in taming it.
In addition, pressure was also felt with the issuance of JPMorgan and Morgan Stanley corporate reports on Thursday while Citigroup and Fargo over the weekend.
The string, Wall Street which started July trading on a positive note was seen declining amid concerns of a sell -off session should the company’s report fail to meet expectations.
The Dow Jones Industrial average index fell 0.42%, the S&P 500 lost 1.04%and the Nasdaq Composite was down 2.02%.
The pan-European STOXX 600 index lost 0.50% and the MSCI worldwide stock index slipped 1.17%.
MSCI’s Asia-Pacific broad gauge Japan’s outer stock closed 2.07% weaker while Japan’s Nikkei rose 1.11% while China’s blue-chip shares fell 1.9% after Shanghai recorded a case involving the Covid-19 Omicron BA variant.5.2.1.
Meanwhile, the dollar index strengthened 0.869% to a 20 -year high against a number of other currencies.
The Japanese Yen weakened 0.86% at $ 137.27 while Sterling traded 1.11% lower at $ 1.1894 while the Euro was down 1.2% at $ 1.0061 after falling nearly 2.4% last week.
Meanwhile, German government 10 -year bond yields fell 5 basis points at 1.296%.
For commodities, oil prices fell around 4% last week as concerns about demand offset supply constraints.
US crude fell 0.97% at $ 103.77 and Brent crude was down 0.22% at $ 106.78.
