Stock Markets Jitter as Trump Assassination Attempt Shakes Investor Confidence

The dollar remained steady while U.S. bond yields rose after an assassination attempt on Donald Trump. European stocks opened lower due to weak Chinese economic data. Investors pushed Treasury yields higher over Trump's possible win. Bitcoin saw a rally, and U.S. retail data is awaited for further economic cues.

The dollar held steady on Monday, with long-dated U.S. bond yields rising, as investors weighed the implications of an assassination attempt on presidential candidate Donald Trump. European stocks opened lower after weak economic data from China and concerning updates from Burberry and Swatch raised questions about consumer confidence.

Investors reacted to the potential Trump victory by pushing Treasury yields higher, driven by expectations that his economic policies could spike inflation and debt. Online betting site PredictIT saw a rise in the odds for a Republican win, and benchmark 10-year Treasury yields increased by 2 basis points to 4.208% on Monday.

Despite a rally in bitcoin, Eren Osman from Arbuthnot Latham urged caution, suggesting that while Trump supporters might feel encouraged, they were already the most likely to vote. U.S. retail sales data on Tuesday will be closely watched for consumer trends after recent slow growth. The dollar index rose modestly, supported by gains against the yen, while the euro eased slightly.

Disappointing economic data from China marked a busy week, with second-quarter growth missing forecasts and retail sales growth hitting an 18-month low. Investors hope for significant measures at the Chinese plenary session to boost the economy. The onshore yuan fell, and Hong Kong's Hang Seng index dropped.

U.S. retail sales, industrial production, housing starts, and jobless claims data are set for release this week. Federal Reserve Chair Jerome Powell will address subdued inflation at the Economic Club of Washington, with markets anticipating a rate cut. The European Central Bank is expected to hold rates ahead of a likely cut in September.

Companies like Goldman Sachs and Netflix will report earnings this week. Gold held steady, and oil prices increased slightly on signs of progress in the Israel-Hamas ceasefire.

(With inputs from agencies.)