In European Equity Markets the pan-European Stoxx 600 closed 0.37 percent higher with the majority of different sectors in buy mode. The media sector was the worst performer in late morning trade, down by more than 1 percent. That basket was not helped by news that Ford was trimming its business with advertising conglomerate WPP.  Among household goods, Reckitt Benckiser fell nearly 2 percent after J.P. Morgan cut its target price, dragging toward the bottom of the FTSE 100. Swiss bank UBS reported better-than-expected first-quarter earnings with net profit up 19 percent. The shares were, however, down by 2.5 percent by Monday’s close.

In Currency Markets the U.S. dollar rallied to a seven-week high on Monday as investors bought the greenback on the rise in the 10-year U.S. Treasury yield toward the psychologically important 3 percent level, leaving the euro and yen lower. The euro fell by 0.6 percent to a 2-1/2 week low of $1.2213, not helped by a survey showing business activity in April stabilizing across the euro zone. The Australian dollar skidded to its weakest since Dec. 13, falling to as low as $0.7613, while sterling and New Zealand dollars also declined. The yen also fell 0.7 percent to 108.48 yen per dollar, its weakest since Feb. 13.

In Commodities Markets oil fell on Monday, as other raw materials came under pressure and after Iran’s oil minister said there would be no need to extend a deal on supply restraint if crude prices rose further. Industrial commodities fell after the United States hinted at sanctions relief for Russian aluminum producer Rusal if Oleg Deripaska cedes control of the firm, easing fears Washington might target palladium producer Nornickel. Aluminum and palladium, a key Russian export, fell more than 5 percent, while oil prices declined by around $1 a barrel. Brent crude futures were down 80 cents at $73.26, while U.S. West Texas Intermediate crude futures fell by $1.20 to $67.20.

In US Equity Markets stocks were little changed on Monday, with gains in industrial and healthcare stocks offsetting the impact from falling oil prices, as investors kept an eye on rising U.S. bond yields. Seven of the 11 major S&P sectors were higher, led by a 0.35 percent gain in the S&P healthcare index. Merck rose 1.6 percent after Goldman Sachs upgraded the stock to “buy”. Caterpillar rose 0.6 percent after Citigroup upgraded to “buy”, saying the stock could outperform over the next six to 12 months. Boeing rose 0.3 percent, providing the biggest boost to the Dow and industrial stocks. The S&P 500 was up 0.06 percent, at 2,671.62 and the Nasdaq Composite was flat at 7,148.14.

In Bond Markets investors sold euro zone government bonds on Monday after 10-year U.S. Treasury yields headed towards the psychologically significant 3-percent mark as rising commodity prices forced inflation expectations higher. The yield on 10-year U.S. Treasuries was within a shade of 3 percent, hitting 2.998 percent, and the spread over the German equivalent was briefly at its widest level in 29 years. German 10-year yields rose their highest in six weeks at around 0.638 percent. As the European session wore on, many euro zone government bond yields began to match the rise in U.S. borrowing costs, and were up 2-4.5 basis points (bps) across the board.