June 6 New York

The DJIA fell by 47.81 points to 21136.23 while the SP500 declined by 6.77 points to 2429.33  The Nasdaq Composite Index fell by 20. 626 points to 6275.058. (Mitsubishi UFJ Morgan Stanley)   The ten year treasury yield was 2.15% while the rate of the U.S. dollar to the yen was 109.41.  WTI closed at $48.04 per barrel.  There was a reluctance to add to risk positions ahead of testimony Thursday from former FBI Director James Comey, the ECB’s policy decision and the U.K. election.  Tresuries steadied after climbing on news that China is prepared to buy more of the notes.  The yield on 10-year Treasuries was steady at 2.15%.  Thursday will definitely be a pivotal day for capital markets.  Comey’s testimony will give clues on how politically effective the Trump administration will be in refocusing attention on its policy agenda.  Investors had already taken a defensive stance this week following Qatar’s isolation in the Persian Gulf and the weekend’s terror attack in London.  The rise in crude oil prices caused by the geopolitical risk in the Middle East helped the energy sector gain in the New York Stock Exchange.  WTI futures closed at $48.19 per barrel.  Comey will publicly describe conversations with Donald Trump but stop short of saying if he thinks the president sought to obstruct a federal probe of Russia’s role in the 2016 election, according to a person familiar with Comey’s thinking.  The European Central Bank releases its policy decision Thursday. The ECB President Mario Draghi speaks later that day.  No policy changes are expected, but the ECB may drop the reference to “downside” risks to growth, while reiterating a weak inflation outlook.  Surveys of U.K. voters over the past few weeks have indicated a tightening race for Thursday’s election, increasing the chance that Prime Minister Theresa May might not secure her majority.  Investors adopted a cautious stance ahead of a barrage of events due in the next two days.