Equities take a breather while awaiting earnings

Economic Data

- (IE) Ireland Jun Consumer Confidence: 81.1 v 79.4 prior
- (RU) Russia Jun Official Reserve Assets: $478.3B v $473.0Be
- (PL) Poland Jun Official Reserves: $102.0B v $102.7B prior
- (CA) Canada May Building Permits M/M: 13.8% v 2.0%e
- (CL) Chile May Economic Activity M/M: 0.6% v 1.0%e; Y/Y: 2.3% v 3.0%e
- (CL) Chile Jun Trade Balance: $625M v $175Me
- (CL) Chile Jun Copper Exports: $3.3B v $3.5B prior
- (MX) Mexico May Leading Indicators M/M: 0.1 v 0.0 prior
- (CL) Chile May Real Wage M/M: -0.1% v -0.2% prior; Y/Y: 1.0% v 1.2% prior
- (BR) Brazil Jun Vehicle Production: 215K v 282.5K prior; Vehicle Sales: 263.6K v 293.4K prior; Vehicle Exports: 24.2K v 35.2K prior
- (CA) Canada Jun Ivey Purchasing Managers Index (Seasonally Adj): 46.9 v 52.0e; PMI Unadj: 49.7 v 52.2prior
- (HU) Hungary Jun YTD Budget Balance (HUF): -814B v -681.7B prior
- (CA) Bank of Canada (BOC): Q2 Senior Loan Officer Survey: -12.8 v -10.9 prior; Business Outlook Future Sales: 24 v 30e

- Stock markets returned from the long holiday weekend under very modest pressure. Indices appear to be backing away from the latest new all-time highs largely on some profit taking. Trading remains thin and overall news flow is light. Friday's June jobs report once again confirmed an improving employment picture and has thus caused some to re-evaluate current Fed expectations, which is helping keep a lid on stock prices. The US Treasury curve is flatter with the long end finding some bids while the short end consolidates the post employment report selling. The benchmark 10-year yield is lower bay a few basis points from where it finished before the holiday break, trading around 2.62%.

- Banking stocks are little heavy world-wide. The WSJ noted that Basel officials continue to explore potential measures that would make it more difficult for banks to downplay the riskiness of assets on their books.

- WTI crude has slipped to nearly a one month low. Iraq officials confirmed that June production stayed close to 2.5M bpd. Valero reiterated their 2014 capital spending plans despite some of the recent hand wringing seen in the refining space related to reported tweaks to US oil export regulations.

- FX markets appear set for summer doldrums. The USD/JPY pair remained within the two yen range since April while the EUR/USD has been confined to a 200-pip range for the past six weeks. It continues to hold right around 1.36. USD/CAD caught a bid after the June Ivey purchasing managers index missed expectations by a decent margin.

Looking Ahead

All times listed for economic events are denominated in Eastern Standard Time (Add 4 hours for GMT equivalent)
- Eurogroup meeting in Brussels
- 11:00 (DE) ECB's Lautenschlager (Germany) in Hamburg
- 11:00 (US) Fed to purchase $2.50-3.25B in notes
- 11:30 (US) Treasury to sell $48B in 3-Month and 6-Month Bills
- 13:30 (se) Sweden Central Bank (Riksbank) Gov Ingves
- 15:00 (NZ) New Zealand Central Bank (RBNZ) Gov Wheeler
- 16:00 (US) Crop Condition Report
- 19:50 (JP) Japan May Current Account Balance: ¥417.5Be v ¥187.4B prior; Adj Current Account: ¥158.1Bev ¥130.5B prior
- 19:50 (JP) Japan May Trade Balance: -¥822.5Be v -¥780.4B prior
-23:45 (JP) BOJ Dep Gov Nakaso speaks in Tokyo
- (MX) Mexico Banamex Survey of Economists
- (CO) Colombia Jun CPI Core M/M: No est v 0.2% prior; Y/Y: No est v 2.8% prior
- US Sec of State Kerry to visit China on July 8-10th for the US-China Strategic and Economic Dialogue