Global stocks kicked off the week on the back foot on Monday, after strong gains last week, while increasing bets on Donald Trump winning the looming US presidential election helped send bitcoin and gold to new peaks.

Heightened uncertainty over conflict in the Middle East added to the appeal of gold, which hit new record highs around of $2,733 an ounce.

Hundreds of Beirut residents fled their homes late on Sunday, as Israel prepared to attack sites linked to the financial operations of Lebanon’s Hezbollah group, propping up oil on worries over supply disruption.

Wall Street futures, pointed to a lower open and Europe’s STOXX 600 index (.STOXX) fell 0.6 per cent ahead of results later in the day from German heavyweight SAP (SAPG.DE), which could set the tone for a busy earnings week on both sides of the Atlantic.

Other major results this week include Deutsche Bank (DBKGn.DE), Barclays (BARC.L), while a quarter of S&P 500 companies will post results including Tesla (TSLA.O), Boeing (BA.N) and IBM (IBM.N).

“Earnings will be very important in giving direction to stocks – whether or not current US valuations can be justified,” said Chris Scicluna, head of economic research at Daiwa Capital Markets in London.

MSCI’s World Stock Index was down around 0.2 per cent (.MIWD00000PUS).

The economic calendar gets is busier in the latter half of the week with US and European business activity data for October and the Federal Reserve’s Beige Book survey due out.

With two weeks to go before the Nov. 5 US election, bets reflecting a Donald Trump victory were on the rise and gaining market attention.

The Republican candidate’s tariff, tax and immigration policies are seen as inflationary, negative for bonds and positive for the dollar. Trump is expected to take a more favourable stance towards cryptocurrencies.

Bitcoin retreated after hitting its highest since late July at around $69,487. The world’s largest cryptocurrency gained almost 10 per cent last week, and is up more than 8 per cent for the month.

“With clear policy statements supporting crypto from the (Kamala) Harris campaign, the market seems less worried about downside,” said Gautam Chhugani, global digital assets analyst at Bernstein, referring to the US vice president.

Sterling and the euro were down about 0.2 per cent each against the dollar, while the US currency crossed the 150 mark against the yen and was last up 0.25 per cent on the day , , .

The dollar index, which measures the greenback’s value against a basket of peers, was last up 0.16 per cent at 103.61 – not far more than two-month highs hit last week .

“Candidates can have preferences for different industries but where rubber meets the road, it’s almost impossible to predict what can actually get accomplished,” said Art Hogan, chief market strategist of B. Riley Wealth Management.

“The dollar is much more a reflection of the better economic data and the perception of what the Fed is going to do has tapered back,” said Art Hogan, chief market strategist of B. Riley Wealth Management, explaining the dollar’s moves.

In bond markets, the benchmark 10-year US Treasury yield rose 6 basis points to 4.13 per cent — its highest since late July. Two-year yields increased 3 bps to 3.99 per cent.