Stocks fell as traders geared up for a week of political risks and inflation data which may help guide bets on the outlook for global interest rates. Euro Stoxx 50 futures slipped.
Most Asian equity benchmarks declined with Japanese stocks outperforming the region. The Japanese yen was below 160 per dollar as top currency official Masato Kanda said authorities are ready to intervene to support it 24-hours a day, if needed.
The moves come as markets are at a critical juncture for positioning into the second half of 2024 with the outlook for central bank policy rates from New Zealand to Japan and the US unclear. Inflation prints in Australia and Tokyo and the Federal Reserve’s preferred gauge of consumer costs may yield clues, but political risks loom large.
Investors will be closely monitoring the first UK prime ministerial, and US presidential debates scheduled this week, while the first round of voting in the French legislative election is set to take place this weekend.
