Global stocks slipped on Monday after New York’s second-quarter rally fizzled out at the end of last week. The rally was able to reverse over a year of losses induced by 10 consecutive Federal Reserve interest rate hikes.
The pan-European Stoxx Europe 600 edged 0.5% lower on Monday morning, with chemical and construction companies leading declines. Sartorius AG freefell by 15% after it issued a larger-than-expected profit warning.
Asian stocks were also on the decline, with the MSCI Asia Pacific Index slipping by 0.6%. Losses were led by Alibaba Group Holding Ltd, JD.com Inc., and Baidu Inc, all of which fell by more than 3%. The MSCI Emerging Markets Index was down by 0.7%.
With U.S. markets closed on Monday due to a holiday, investors are set to keep an eye on the Federal Reserve’s actions as a means of gauging the market’s potential trajectory going forward.
Fed Chair Jerome Powell is slated to deliver his semi-annual report to Congress on Wednesday, with Federal Reserve Bank of St. Louis President James Bullard and his colleague hailing from New York and Chicago set to speak as well.