Investing.com - U.S. stocks closed lower Monday, as investors remained cautious ahead of a highly anticipated German court ruling later in the week despite high hopes for fresh easing measures by the Federal Reserve.
At the close of U.S. trade, the Dow Jones Industrial Average fell 0.39%, the S&P 500 index gave back 0.61%, while the Nasdaq Composite index plunged 1.03%.
Investors remained cautious ahead of a German court ruling on the constitutionality of the euro zone’s bailout fund, the European Stability Mechanism on Wednesday.
Sentiment also weakened after official trade data showing that Chinese imports fell unexpectedly by 2.6% from a year earlier, while exports grew just 2.7%, below expectations, added to concerns over a global economic slowdown.
But sentiment remained supported after the European Central Bank unveiled details of its bond purchasing program, which is aimed at lowering the borrowing costs of peripheral euro zone members.
Meanwhile, markets were also eyeing the outcome of the Fed’s policy meeting on Thursday, after disappointing employment data on Friday fueled fresh speculation that the U.S. central bank may announce a third round of quantitative easing to boost growth.
Oil major BP was on the upside, with shares adding 0.12%, amid reports it is in talks to sell some of its Gulf of Mexico oil fields to Plains Exploration & Production for around USD7 billion, as the U.K. oil firm looks to raise money to pay for damages from the 2010 oil spill.
Transocean fell 0.15% on the other hand, after saying that it is selling 38 of its shallow-water rigs to Shelf Drilling International for about USD855 million.
Financial were broadly higher, led by Bank of America, up 1.14%, and followed by Citigroup, whose shares climbed 1.09%, while JP Morgan rose 0.10%.
The Wall Street Journal reported earlier that JPMorgan was considering smaller bonuses for CEO James Dimon and other executives, while Citigroup was also rethinking executive pay structure.
Only Goldman Sachs saw shares decline, dropping 0.31% in early U.S. trade, amid reports it and private equity firm CVC Capital Partners have proposed a debt-for-equity swap for CVC's Australian television network Nine.
The deal would wipe out CVC's equity and pass control to its lenders.
Elsewhere in company news, AIG tumbled 2.21% after the Treasury Department said it will sell most of its stake in the insurer, making the government a minority investor for the first time since it bailed out the company nearly four years ago.
European stocks closed lower on the session with the EURO STOXX 50 dropped 0.40%, France’s CAC 40 fell 0.37%, while Germany’s DAX 30 eased lower by 0.01%.
Investors are awaiting the U.S. and Canadian trade balance numbers on Tuesday.
At the close of U.S. trade, the Dow Jones Industrial Average fell 0.39%, the S&P 500 index gave back 0.61%, while the Nasdaq Composite index plunged 1.03%.
Investors remained cautious ahead of a German court ruling on the constitutionality of the euro zone’s bailout fund, the European Stability Mechanism on Wednesday.
Sentiment also weakened after official trade data showing that Chinese imports fell unexpectedly by 2.6% from a year earlier, while exports grew just 2.7%, below expectations, added to concerns over a global economic slowdown.
But sentiment remained supported after the European Central Bank unveiled details of its bond purchasing program, which is aimed at lowering the borrowing costs of peripheral euro zone members.
Meanwhile, markets were also eyeing the outcome of the Fed’s policy meeting on Thursday, after disappointing employment data on Friday fueled fresh speculation that the U.S. central bank may announce a third round of quantitative easing to boost growth.
Oil major BP was on the upside, with shares adding 0.12%, amid reports it is in talks to sell some of its Gulf of Mexico oil fields to Plains Exploration & Production for around USD7 billion, as the U.K. oil firm looks to raise money to pay for damages from the 2010 oil spill.
Transocean fell 0.15% on the other hand, after saying that it is selling 38 of its shallow-water rigs to Shelf Drilling International for about USD855 million.
Financial were broadly higher, led by Bank of America, up 1.14%, and followed by Citigroup, whose shares climbed 1.09%, while JP Morgan rose 0.10%.
The Wall Street Journal reported earlier that JPMorgan was considering smaller bonuses for CEO James Dimon and other executives, while Citigroup was also rethinking executive pay structure.
Only Goldman Sachs saw shares decline, dropping 0.31% in early U.S. trade, amid reports it and private equity firm CVC Capital Partners have proposed a debt-for-equity swap for CVC's Australian television network Nine.
The deal would wipe out CVC's equity and pass control to its lenders.
Elsewhere in company news, AIG tumbled 2.21% after the Treasury Department said it will sell most of its stake in the insurer, making the government a minority investor for the first time since it bailed out the company nearly four years ago.
European stocks closed lower on the session with the EURO STOXX 50 dropped 0.40%, France’s CAC 40 fell 0.37%, while Germany’s DAX 30 eased lower by 0.01%.
Investors are awaiting the U.S. and Canadian trade balance numbers on Tuesday.