NEW YORK (TheStreet) -- U.S. stock futures were trading lower on Mondayaafter stocks posted their biggest weekly rally of 2014 last week. Futures were trading lower on Brazilian President Dilma Rousseff’s re-election in a runoff vote on Sunday, in addition to weak economic data from Europe that continues to point to a prospect of deflation in the region. Futures for the S&P 500 were trading down 0.13%. Nasdaqafutures were down 0.02% and Dow Jones Industrial Average futures fell 0.06%. Must Read: Warren Buffett's Top 10 Dividend Stocks On Sunday, Dilma Rousseff of the Worker Party was re-elected as Brazil's president, taking 51.4% of the vote in a hotly contested runoff against Aecio Neves of the Social Democracy, who took 48.5% of the vote. Rousseff, who ran on a platform of poverty reduction, has been president of Brazil since October 2010. In recent years, her popularity has fallen amid inflation in Brazil, corruption and the BRIC country's worsening economic performance. The iShares MSCI Brazil Index fell over 10% to $37.14 in premarket trading. THe Brazilian Real fell 3.2% on Monday, its biggest drop in three years. In Europe, economic data from core countries such as Germany continued to point to a prospect of deflation, potentially giving reason for the European Central Bank to begin telegraphing stronger measures to provide stimulus to financial markets in the region. On Monday, the German Ifo Institute's business climate index fell for a sixth straight month to its lowest reading in nearly two-years. The Ifo index, which is based on a survey of regional business executives, dropped to 103.2 in October, missing forecasts, according to the median estimate compiled by Bloomberg. That disappointing data comes as investors continue to fear that the eurozone is falling into recession. Other gauges of the German economy, the strongest performer in the European Union, alsoapoint to declines. Investors may get a hint on whether the ECB will increase its stimulus to markets when data on the central bank's covered bond purchases is released. Many speculate that ECB President Mario Draghi will embark on an easing effort similar to the Federal Reserve's quantitative easing program through covered bond purchases. While QE in the U.S. is set to expire in October, some governors of the central bank have said the program should be extended. The Federal Reserve will convene its monthly meeting on Oct. 28 and Oct. 29, with investors closely watching for any extension to QE. In the U.S., third-quarter corporate earnings continue, with Merck beating profit estimates but missing on sales forecasts. Shares in the pharmaceutical giant were tradinga0.68% higher at $58 in the premarket. Valeant Pharmaceuticals asaid it was willing to improve an offer for Allergan to at least $200 a share. maker Allergan , which continues to contest a hostile takeover bid from Valeant Pharmaceuticals , is forecast to earn $1.77 a share when it reports third quarter earnings on Friday. After the market close, Twitter , Manitowoc , Cliffs Natural Resources and T-Mobile will report earnings. Twitter is forecast to earn 1 cent a share, while Manitowoc is forecast to earn 41-cents and Cliffs is expected by analysts to earn 1-cent in the third quarter. Analysts expect a 5-cent a share quarterly profit from T-Mobile. Must Read: Warren Buffett's Top 10 Dividend Stocks -- Written by Antoine Gara in New York Follow @AntoineGara // 0;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src="//platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); // ]]>
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