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(Bloomberg) -- U.S. stock indexes saw their first declines in more than a week as investors prepared for a big week of earnings reports and monitored the progress of tax legislation.

“Earnings will be center stage, and then tax reform,” Ernie Cecilia, the chief investment officer at Bryn Mawr Trust Co. in Pennsylvania, said by phone. “Those are the two, whatever order you want to put them in.”

The S&P 500 Index and Dow Jones Industrial Average both fell Monday, pulled down by technology and industrial stocks. Europe’s bonds were broadly stronger as Treasuries steadied. West Texas crude approached $52 a barrel after OPEC reported record compliance with pledged production cuts. The dollar advanced to a 14-week high. 

There’s no shortage of other potential catalysts out there for investors this week, from the reaction to the election in Japan to the boiling Catalonia crisis and very different moves toward autonomy in parts of Italy. Central banks also loom large, with a pivotal European Central Bank meeting due and the possible unveiling of President Donald Trump’s pick for Federal Reserve chair. The U.S. president said Monday that he’s “very, very close” to announcing his nominee.

The euro weakened as Catalan separatists planned their response to Spain Prime Minister Mariano Rajoy’s moves to stamp his authority on the region. European stocks got support from the common currency’s slip, while Spanish shares underperformed. The pound advanced as U.K. Prime Minister Theresa May told Parliament that progress had been made in Brexit talks. In Japan, Shinzo Abe’s election victory sent the Nikkei to the longest winning streak on record.

Terminal users can read more in our Markets Live blog.

These are some of the key events coming up:

  • The U.S. economy probably expanded at about a 2.5 percent annualized pace in the third quarter, restrained in part by the effects of two hurricanes, economists forecast the government to report on Friday.
  • Among other U.S. data this week, orders for big-ticket durable goods probably increased in a sign of firmer manufacturing growth.
  • Australia updates on third-quarter inflation on Wednesday, while South Korea reports on GDP and Hong Kong on imports and exports. Japan reports on CPI later in the week.
  • The European Central Bank holds a policy meeting on Thursday at which it’s expected to announce its stimulus plan for 2018.
  • Brazil, Argentina, Russia and Canada also announce rate decisions in the coming days.
  • Companies reporting earnings this week include Alphabet Inc., Microsoft Corp. and Twitter Inc. in the technology sector. Ford Motor Co., Volkswagen AG and Boeing Co. headline cars and planes. Fast food giant McDonald’s Corp., Coca-Cola Co. and brewer Heineken NV join European banks including UBS Group AG, Deutsche Bank AG and Barclays Plc.

And here are the main moves in markets:

Stocks

  • S&P 500 Index fell 0.4 percent Monday, the biggest decrease in almost seven weeks; the Dow declined 0.23 percent.
  • The Nasdaq Composite Index dropped 0.67 percent.
  • The Stoxx Europe 600 Index gained about 0.2 percent.

Currencies

  • The Bloomberg Dollar Spot Index climbed 0.1 percent to its highest in more than 14 weeks.
  • The euro fell 0.3 percent to $1.1748, the weakest in two weeks.
  • The pound rose 0.1 percent to $1.3198.

Bonds

  • The yield on 10-year Treasuries declined one basis point to 2.37 percent.
  • Germany’s 10-year yield dropped two basis points to 0.43 percent.
  • Britain’s 10-year yield fell two basis points to 1.312 percent.

Commodities

  • Gold climbed 0.1 percent to $1,281.94 an ounce.
  • West Texas Intermediate crude increased 0.1 percent to $51.91 a barrel.

Asia

  • Japan’s Topix index climbed 0.8 percent, cementing a rally to the highest since mid 2007. The Nikkei jumped to once again hit the highest since 1996.
  • MSCI’s Asia Pacific Index added 0.1 percent. South Korea’s Kospi index was little changed. Hong Kong’s Hang Seng fell 0.6 percent. Australia’s S&P/ASX 200 lost 0.2 percent. 

--With assistance from Adam Haigh

To contact the reporters on this story: Samuel Potter in London at spotter33@bloomberg.net, Sarah Ponczek in New York at sponczek2@bloomberg.net.

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Andrew Dunn, Dave Liedtka

©2017 Bloomberg L.P.

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