Last week’s losses on Russian floors are expected to continue on Monday. Still, Russian stocks opened higher despite the neutral international outlook and lack of expected financial news. US markets are on holiday on Monday.
The London Stock Exchange will be closed on Monday for a May bank holiday, and US floors will be closed for Memorial Day.Investors are awaiting the Wednesday release of the Federal Reserve’s minutes, particularly Fed chief Ben Bernanke’s testimony on the US economic outlook and monetary policy. A Bank of Japan policy meeting on Wednesday and eurozone data on manufacturing and service sector activity are also expected to be key drivers this week.
Russian stocks posted losses on May 24: The MICEX closed down 1.18 percent at 1380.88 and the RTS ended 0.88 percent lower at 1388.52.
European floors also closed in the red last Friday: London's FTSE 100 dropped 0.63 percent to 6,654.34, Germany’s DAX 30 fell 0.56 percent to 8,305.32 and the French CAC 40 slid 0.26 percent to 3,956.79.
On Friday, investors seemed unsure whether Thursday’s sell-offs were a flash crash or signs of a deeper correction on the way. Major European indicators dropped more than 2.0 percent after the Nikkei plunged due to weak China flash PMI data, as well as signs that the US Fed may soon draw down its massive stimulus program.
US stocks traded flat Friday, apparently gun-shy after the Nikkei’s 7.3-percent dive on Thursday. The Dow Jones Industrial Average closed up 0.06 percent at 15,303.10, the S&P 500 slid 0.06 percent to 1,649.60 and the Nasdaq fell 0.01 percent to 3,459.14.
Asian stocks traded mixed Monday, with Japan’s Nikkei down 3.11 percent following Thursday’s slump and comments from Chinese leader Xi Jinping raising concerns about the slowing Chinese economy. Hong Kong’s Heng Seng climbed 0.22 percent, the Shanghai Composite traded flat, South Korea’s Kospi rose 0.32 percent and Australia’s S&P/ASX 200 fell 0.63 percent.
The Bank of Japan will release the minutes of its most recent monetary policy meeting on Tuesday, which are expected to offer the bank’s perspective on worldwide economic conditions.
Oil prices are lower Monday, with Brent losing 0.3 percent and WTI down 0.6 percent.