US stocks closed lower on Monday erasing earlier gains spurred by rising oil. The dollar continued weakening weighed by the comments of Federal Reserve Chair Janet Yellen about the need to be cautious with interest rate hikes. The live dollar index data indicate the ICE US Dollar Index, a measure of the dollar’s value against a basket of six major currencies, hit an eight month low finishing 0.3% lower at 93.92. The Dow Jones Industrial Average slipped 0.1% to close at 17556.4100, led by declines in Nike (NYSE:NKE) and Pfizer (NYSE:PFE). The S&P 500 lost 0.3% and settled at 2041.99, dragged lower by consumer staples and health care sectors, both down 0.7%. Stocks closed lower despite rising oil as investors braced for the start of another poor earnings season with Alcoa (NYSE:AA) slated to report first quarter earnings after market close. Shares of Alcoa slid 3% in after-hours trading as the company reported revenues of $4.9 billion, 15% lower from a year earlier, and $16 million of earnings against $195 million a year earlier. Bank stocks are expected to be the worst performers with interest rates remaining low, which hurts profit margins of banks dependent on the difference between the interest rates they make on loans and the rates they pay on deposits.
Today at 12:00 CET March Small Business Optimism Index will be released by National Federation of Independent Business in US. And at 14:30 CET March Import Prices Index will be published. The tentative outlook is positive. At 15:00 CET Federal Reserve Bank of Philadelphia President Patrick Harker speaks on the economic outlook in Philadelphia. And at 21:00 CET Federal Reserve Bank of San Francisco President John Williams speaks on US monetary policy and the global economic outlook in San Francisco.
European stocks ended higher on Monday as commodity stocks advanced and Italian bank shares rallied. The euro strengthened, rising to $1.1407 late Monday in New York compared with $1.1402 late Friday. The Stoxx Europe 600 closed up 0.3%, helped by a rally in Italian shares on expectations that a fund may be set up to deal with bad loans. Banco Popolare Societa Cooperativa jumped 10% , Banca Monte dei Paschi di Siena gained 9.8%. Mining shares advanced as soft inflation data from China spurred further expectations for more stimulus measures from the Chinese government. Anglo American (LON:AAL) rallied 6.9% and Boliden AB (ST:BOL) gained 1.7%. Germany's DAX 30 rose 0.6% settling at 9682.99, France's CAC 40 added 0.2%. Today at 10:30 CET March Consumer Price Index will be published in UK. The tentative outlook is neutral.
Asian stocks are rising today led by a rebound in Japanese equities. The Nikkei gained 1.1% to 15928.79 as yen slid 0.3% against the dollar after Finance Minister Taro Aso warned against excessive yen strength. Exporters advanced with Toyota Motor Corp Ltd Ord (T:7203) rallying 3.9% and Honda Motor Company Ltd (T:7267) adding 3.8%.
Oil futures prices are steady today after settling above $40 a barrel on Monday supported by Baker Hughes data which showed US oil-rig count fell by 8 to 354 last week. June Brent crude rose 2.1% to $42.83 a barrel on London’s ICE Futures exchange. Investors were also encouraged by data pointing to strong crude oil demand by US refineries and nearly a 25% year-over-year rise in Chinese crude imports in February.