Angela Merkel and her conservative party won German elections on
Sunday, but she will not have an absolute majority in Germany's
lower house of parliament. Her junior coalition partner, the
Christian Democratic Union fell short, leaving Merkel to find a new
In other news around the markets:
International inspectors were checking up on Greece this Sunday as
the country's next installment of its bailout money approached.
Officials from the International Monetary Fund, European Union and
ECB met with Greek policy makers to discuss the aid package as well
as to find a solution to the country's 2.5 to 4 billion euro fiscal
gap in 2015. This week will likely be a chaotic one in Washington
as Republicans and Democrats argue over whether or not to raise the
government's borrowing authority. At the heart of the issue is the
Republican war against Obamacare, which both Obama and the
Democratic Senate refuse to postpone. The government's squabble
could end in a shutdown on October 1st if the conflict hasn't been
resolved before then. General Electric's struggling power-turbine
business received a boost when it signed a $1.9 billion contract to
provide turbines for six power plants in Algeria. Recession has hit
power demand in developed countries, so GE's expansion into
emerging markets is crucial. Conflict in Italian politics flared up
over the weekend after Italian economic minister Fabrizio
Saccomanni claimed he would resign if EU deficit spending limits
are overlooked in favor of tax cuts. His departure from the already
fragile Italian coalition government could have disastrous effects
on the country's stability.
Asian markets were mixed on Monday. China's upbeat PMI data gave
the country's markets a boost; the Shanghai composite was up 1.33
percent and the Shenzhen composite gained 2.09 percent. Australia's
ASX 200 lost 0.46 percent and Indonesia's JSX composite was down
European markets were down across the board on Monday. The UK's
FTSE was down 0.29 percent and the eurozone's STOXX 600 lost 0.15
percent. The Spanish IBEX lost 0.33 percent and the German DAX was
down 0.17 percent.
Brent futures for November delivery were down 0.24 percent and
WTI futures for November delivery were down 0.20 percent. Gold was
down 0.33 percent and silver lost 0.74 percent. Industrial metals
were also down across the board, copper lost 0.93 percent and
aluminum lost 1.59 percent.
The euro continued to trade above $1.35 on Monday, but the pound
gained 0.25 percent against the dollar. The yen gained 0.38 percent
against the dollar and the Australian dollar was up 0.30 percent
against the greenback.
No notable earnings were reported on Friday
Stocks moving in the pre-market included:
Perrigo Co (NYSE:
) gained 0.54 percent in pre-market trade as investors kept an eye
on the company's acquisition deal with Elan Corporation. FedEx Corp
) was down 0.28 percent in pre-market trade after its better than
expected earnings report helped the company's stock climb nearly 9
percent last week. Nike Inc. (NYSE:
) lost 0.10 percent in pre-market trade as investors anxiously
awaited the company's earnings report, due out on Thursday.
Earnings reports expected on Monday include:
Red Hat, Inc. (NYSE:
) is expected to report EPS of $0.33 on revenue of $372.11 million,
compared to last year's EPS of $0.28 on revenue of $322.60
PMI data dominates Monday's economic calendar, with releases
from China, the eurozone, the US, Germany and France.
Happy trading and good luck!
For a recap of Friday's market action, click
Tune into Benzinga's pre-market info show with Dennis Dick and
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Free Trading Education -
Check out the free events taking place on Marketfy
this week. Spaces are limited. Sign up today.