At the close of U.S. trade, the Dow Jones Industrial Average fell 0.46%%, the S&P 500 index dropped 0.47%, while the Nasdaq Composite index gave back 0.27%.
European stocks closed higher Monday after bullish sentiment by Greece that plans to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.
At the close of European trade, the EURO STOXX 50 added 0.28%, France’s CAC 40 eased higher by 0.26%, while Germany’s DAX 30 climbed 0.40%.
The Asian session started this morning cautiously after last week gains, with investors reluctant to buy shares amid continued disagreement in the U.S. Congress over proposals to avert the so-called fiscal cliff - $600 billion worth of tax increases and spending cuts that will be automatically triggered in early 2013.
The Reserve bank of Australia trimmed its rate by 25 basis points to 3.0 % this morning, matching the previous record low. This Rate cut was widely expected as the RBA keep repeating its earlier statement;” the full impact of rate cuts in the past had yet to be felt, and that recent data confirmed the peak in resource investment was approaching.”
At the start of the European session today, market sentiment rose after Spain's Employment Ministry said that the number of unemployed people rose less-than-expected in November, rising by 74,300 after an increase of 128,200 the previous month.
The market calendar for today is relative thin. The European Inflation report and the European finance ministers meeting will take place later in the day while Canada GDP numbers will came out at 14:00GMT.
EUR/USD There are fears that U.S. lawmakers will repeat the same political divisiveness that led Standard & Poor's to downgrade the U.S.’s AAA rating in August 2011. The White House dismissed a proposal from congressional Republicans on Monday that included tax reforms and spending cuts, saying it did not meet President Barack Obama's pledge to raise taxes on the wealthiest Americans.
Meanwhile, in the euro zone, finance ministers from the European Union were to hold talks in Brussels later Tuesday.