Here is what you need to know.
Italy votes ‘No.’ Italians voted against reducing the number of senators in Italy’s government, a move prime minister Matteo Renzi said would significantly reduce bureaucracy in Italy. Renzi has resigned as a result of the vote.
The euro has erased its losses. The single currency tumbled to a low of 1.0506, its weakest since March 2015, in response to the ‘No’ vote in Italy. However, it has quickly erased those losses and now trades up 0.4% at 1.0705 against the dollar.
Stock markets around the world trade mixed. Markets were hit hard overnight as China’s Shanghai Composite (-1.2%) paced the decline. In Europe, Germany’s DAX (+1.4%) is out front and Italy’s MIB (-0.1%) holds a small loss. The S&P 500 is looking to open up by about 0.5% near 2,202.
Trump tweets tough on China. “Did China ask us if it was OK to devalue their currency (making it hard for our companies to compete), heavily tax our products going into their country (the U.S. doesn’t tax them) or to build a massive military complex in the middle of the South China Sea? I don’t think so!” President-elect Donald Trump tweeted on Sunday after it was reported that China was upset with his phone call to Taiwanese President Tsai Ing-wen, the first by an American President or President-elect in more than 30 years.
New Zealand’s prime minister resigns. “A good leader knows when it’s time to go, and it’s time to go,” New Zealand Prime Minister John Key said as he announced his resignation after 10 years on the job. The New Zealand dollar is weaker by 0.8% at .7088 against the dollar.
Britain’s services sector continues to see a post-Brexit revival. The November PMI survey reading from IHS Markit improved to 55.1, up from 54.5 in October, making for its best print since January. The British pound is down 0.1% at 1.2718 versus the dollar.
Crude oil is at its best level in 17-months. West Texas Intermediate crude oil is higher by 1.3% at $52.18 per dollar as trade continues to rally after last week’s OPEC decision to cut production.
Burberry has rejected multiple takeover offers from Coach. Informal talks for a cash and stock takeover of Burberry that would have created a luxury fashion brand worth more than $20 billion have gone nowhere, according to the Financial Times.
Earnings reporting is light. GW Pharmaceuticals reports ahead of the opening bell.
US economic data flows. Services PMI and ISM non-manufacturing will be released at 9:45 a.m. ET and 10 a.m. ET, respectively. The US 10-year yield is up 3 basis points at 2.41%.
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