Investing.com - Here are the top five things you need to know in financial markets on Monday, May 28:
1. U.S., UK Markets Closed For Holiday
Market holidays in the world's two biggest financial centers - London and New York - could make trading slow and illiquid for the day.
Trading volumes were likely to remain light with U.S. stock markets closed for Memorial Day, a holiday that honors those who have lost their lives while serving in the military.
Fixed-income markets, as well as U.S. markets for commodities will also remain closed, though they will be trading electronically.
Additionally, the UK’s FTSE 100 is also shuttered for a bank holiday on Monday. However, other European stock markets will remain open.
Currency markets are also operating as usual, though volumes will be lighter than normal.
2. Euro Shaken By Italian Politics
The euro reversed gains to slump to a fresh 6-1/2-month low of 1.1642 against the dollar (EUR/USD), as the prospect of fresh elections in Italy dampened sentiment.
The single currency initially rallied to as high as 1.1733, as Italy’s populist parties abandoned their bid to form a coalition government after the country’s President Sergio Mattarella blocked the nomination of a euro sceptic finance minister.
Investors had feared that the coalition could endanger Italy’s membership in the euro zone.
3. Global Stocks Mixed With Italy, North Korea In Focus
Global stock markets were mixed to start the week as investors kept tabs on political uncertainty in Italy while monitoring U.S.-North Korea relations.
After tumbling 4.5% last week, Italy’s FTSE MIB index opened 1.2% higher, but has since surrendered those gains to drop 1.5%, as markets continued to monitor political turmoil in Rome.
Outside of Italy, the pan-European Stoxx 600 was tentatively higher, with most sectors and major bourses in slightly positive territory.
Earlier, in Asia, South Korea's KOSPI ended up about 0.7%, buoyed by stocks which are seen as benefiting from a further thawing in tensions with Pyongyang.
President Donald Trump said on Sunday a U.S. team had arrived in North Korea to prepare for a proposed summit with North Korean leader Kim Jong Un, which Trump pulled out of last week before reconsidering.
Elsewhere, on Wall Street, U.S. stock futures pointed higher, indicating that the major averages were likely to open with gains when traders return to their desks on Tuesday.
4. Oil Battered Anew As OPEC, Russia Mull Output Boost
Oil prices slumped anew, hitting six-week lows, as investors fretted about the prospect of major oil producers such as Russia and Saudi Arabia boosting production in order to meet the shortfall in supply from Iran and Venezuela.
U.S. crude futures dropped to their lowest since April 17 at $65.80 per barrel at one point, before recovering to $66.67, down 1.8%.
Brent crude futures dropped as much as 2.6% to $74.53 per barrel, their lowest level in about three weeks. They last stood at $75.28, down 1.6%.
A relentless increase in U.S. drilling for new production further dampened sentiment.
5. Bitcoin Slides Towards $7,000-Level As Selloff Continues
Bitcoin prices were on the backfoot, sinking to the lowest levels since April 11 as a selloff sparked by fears over a U.S. criminal investigation into whether traders are manipulating the price of cryptocurrencies deepened.
Bitcoin was last down around 2% at $7,243 on the Bitfinex exchange.
Ethereum, the world’s second largest cryptocurrency by market cap, was down 8% at $533, a level last seen on April 17.
Meanwhile, Ripple's XRP token was trading at $0.57344, down around 5.5% for the day.