U.S. stocks experienced a slight drop at the start of the week due to terror attacks in the UK and a turmoil induced oil price rise in the Gulf. The markets are also preparing for a possibly turbulent week that might be witness to key, market-altering political events.
The Dow Jones Industrial Average experienced a 6-point drop to 21,197 and S&P 500 futures slid by 1.2 points to 2,436. NASDAQ 100 futures slid by 4.25 points to 5,881.50.
The previous week saw all 3 indexes closing at record for the second time in a row, despite the May jobs report indicating a poor performance. The S7P 500 experienced a 0.37% rise while the NASDAQ and the DJIA reported gains of 1.5% and 0.6%, respectively.
The FTSE 100 Index and other European stocks experienced a drop at the start of the current week. This was primarily due to the British Pound experiencing a slip after the terrorist attack on London Bridge sent shockwaves across the country.
According to reports, 3 extremists moved down people on the bridge with a vehicle and went on a stabbing spree afterward. Around 7 people are believed to have been killed while another 21 are reportedly injured.
The terrorist attack comes at a time when the UK is just preparing for its elections, which is to be held in a few days. Investors are keen to know if the Conservative Party can continue to hold a majority in the parliament.
With Brexit also on the table, the current UK Election is being seen as a moment that could change the fate of the country.
On the other side, a rift between Qatar and other Middle Eastern countries such as Bahrain, UAE, Saudi Arabia, and Egypt caused a 1% rise in oil rises. Qatar is being blamed by the rest of the Gulf States for siding with Islamic Terrorism and interfering with internal affairs.
The Qatar QE Index experienced a 7% drop due to the rift.
Apart from the UK elections, the week ahead will also witness a revision being made to the first-quarter productivity numbers in the Economic Docket and a testimony from former FBI Director, James Comey concerning Russia’s alleged role in the recent US Election.
A meeting is also taking at the European Central Bank which will focus on discussions regarding changes to the stimulus program.