In European Equity Markets the pan-European Stoxx 600 closed down nearly 0.3%. The index had posted an almost 1% gain earlier in the session. Banks were the biggest fallers, led by a 5% slide for CYBG, while chemicals stocks were the best performers. In corporate news, Apple supplier AMS said Sunday that it has made an all-cash takeover offer of 38.5 euros ($43.15) per share for German lighting group Osram Licht. AMS stock fell almost 12% while Osram shares leaped over 10% on the news.
In Currency Markets sterling clawed back some ground on Monday, benefiting from political ructions in Italy that hit the euro, but concerns over Brexit kept the UK currency within sight of multi-year lows. The pound was up by 0.5% against the euro at 92.59 pence, after Deputy Prime Minister Matteo Salvini threatened to bring down Italy’s coalition government. Euro weakness also helped sterling rise by the same percentage against the dollar, to $1.2083, for its biggest daily move in three weeks. The euro hit a one-week low of $1.1162 and a 28-month low of 117.52 against the Japanese yen.
In Commodities Markets oil prices rose on Monday despite worries about a global economic slowdown and the ongoing U.S.-China trade war, which has reduced demand for commodities such as crude. International benchmark Brent crude futures were at $58.75 a barrel, up 22 cents from their previous settlement. U.S. West Texas Intermediate (WTI) futures were at $55.10 per barrel, up 60 cents from their last close. Both benchmarks had fallen earlier in the day, with Brent hitting a session low of $57.88 and WTI a session low of $53.54.
In US Equity Markets stocks fell on Monday as political tensions around the world and fears that a prolonged U.S.-China trade war would push the global economy into recession sapped risk appetite. The S&P 500 was down 0.65%, at 2,899.70. The Nasdaq Composite fell 0.64%, at 7,908.00. Microsoft Corp and Amazon.com Inc fell about 0.6% each, weighing heavily on the S&P 500. Amgen Inc rose 4.6% as a U.S. judge upheld two patents relating to blockbuster rheumatoid arthritis drug Enbrel, denying a challenge by Novartis AG, which is seeking to launch a copycat version.
In Bond Markets Italy’s 10-year bond yield fell from five-week highs on Monday on relief that the country’s credit rating was left unchanged by Fitch Ratings and hurdles emerged to League chief Matteo Salvini’s calls for an early election. Italy’s 10-year bond yield fell some 9 bps to 1.73% , below five-week highs hit on Friday when it posted its biggest one-day jump since a bond market rout in May 2018.