US index futures are down 0.3%-0.5% this morning, giving back much of yesterday’s 0.1%-0.8% US major index gains. Traders should note that even yesterday, gains appear to have once again been concentrated in large cap technology stocks as the NASDAQ rose 0.8%, while the small cap Russell 2000 fell by 0.8%

Over in Europe this morning, major bourses are in retreat with the Dax down 1.1%, the CAC down 0.9% and the FTSE down 0.4%. Traders have ignored a benign Eurozone inflation report suggesting that they are focused more on political upheaval with the UK voting for Parliament on Thursday and the second round of French Parliamentary elections coming on Sunday.

Fed Chair Powell speaks this morning which usually is a big deal for traders. This week, he seems somewhat overshadowed by US political events including last week’s Presidential Debate and recent Supreme Court rulings on the ability of agencies to enforce regulations (“Chevron”), and Presidential immunity.

A week broken up by holidays in the US and Canada following the end of school, a time many market participants start their holidays, would also help to explain the choppy start to the week. Commodities are on the rebound today with US Crude Oil up 1.0% and trading near $84.00/bbl, while Copper is up 0.5%. Gold is down 0.3%.

It is a big week for economic news. Manufacturing PMI reports yesterday were generally positive for Europe, although the UK missed. US Monday data was disappointing as ISM Manufacturing PMI (48.5 vs street 49.1) and Construction Spending (-0.1% vs street +0.1%) missed expectations and suggested a weakening economy. Canada Manufacturing PMI is due at 9:30 am EDT today (street 50.2). Tomorrow brings Service PMI reports from around the world and US ADP Payrolls, and then on Friday, US nonfarm payrolls, Canada jobs and wage inflation data are due.