U.S. indices closed lower on Monday as bond yields resumed their declines. Stocks seeing the most pressure were in the Banks (-2.11%), Diversified Financials (-1.79%) and Insurance (-1.79%) sectors. On the economic data front, the Treasury reported a monthly budget deficit of $119.7B in July (expected $120.0B deficit). The S&P 500 (2,883.09) trades below its 20d moving average (2,962.51 – negative slope) and below its 50d moving average (2,939.07 – positive slope).
European markets are expected to start on a negative note.<\/p>\n\n\n\n
Foreign Exchange<\/strong><\/p>\n\n\n\n The US dollar was bearish against all of its major pairs on Monday with the exception of the CAD, AUD and NZD. On the economic data front, the Monthly Budget Statement reported a $119.7B deficit in July (estimated $120B) vs. a $76.9B deficit in the prior month.
The Euro was bullish against all of its major pairs with the exception of the JPY, GBP and CHF. In Europe, there was no major economic stat released yesterday.
The Australian dollar was bearish against all its major pairs.<\/p>\n\n\n\n