Heads of Central Banks due to speak

US stocks fell on Monday for third session in a row amid concerns the Fed may hike rates sooner than expected after Friday’s upbeat jobs report. The Dow Jones Industrial Average lost 0.5% and closed in negative territory for 2015. The S&P 500 fell 0.7%, still recording 1% gain for 2015. European stocks slipped on Monday as uncertainty over Greek debt negotiations weighed on market sentiment. The Stoxx Europe 600 index lost 0.9%, falling for a fifth straight trading session. Nikkei fell 0.3 % on Tuesday to a three-week low today as the yen surged after Bank of Japan Governor Haruhiko Kuroda said its effective exchange rate is unlikely to weaken further.

Oil prices surged on Tuesday as US Energy Information Administration monthly report indicated US output is expected to decline from June through early 2016. European stocks rallied on Wednesday as investor sentiment was buoyed by news that Germany is considering a staggered deal on aid for Greece to unlock a portion of bailout funds if Athens commits to at least one economic reform up-front. The Stoxx Europe 600 index jumped 1.8%, breaking six-day losing streak. Gold prices rose, helped by weaker dollar and concerns about Greek debt crisis. Grain futures declined in price on Thursday after the release of the US Department of Agriculture report, which upgraded the crop forecast.

Climate Prediction Center weighted on prices as it predicted that El Nino would be more severe only the next year and its impact would be restricted in 2015. European stocks have been retreating on Friday for two days on Greek default risks. The Stoxx Europe 600 lost about 1%. Greece has not yet made a deal with IMF about debt restructuring, which produced a negative impact on global stocks. Greek problems weakened the euro and supported the US currency. We recommend you to pay attention to the following fundamental events of this week: the ECB President Mario Draghi speech on Monday (15-00 CET), the FOMC Press Conference on Wednesday (20:00 CET), Swiss National Bank Financial Stability Report on Thursday (9-30 CET) and Retail Sales in Canada on Friday (14-30 CET). This news is likely to provoke speculative volatility in the currency and stock markets.