In European Equity Markets indices declined on Monday, falling on worries over slowing economic growth and after a Brexit vote in U.K. parliament was been delayed by Prime Minister Theresa May. The pan-European Stoxx 600 finished down by around 1.8 percent with all sectors and major bourses in negative territory. Britain’s FTSE 100 index fell 0.7 percent. Germany’s BASF SE was a poor performer in the chemicals sector, falling more than 4 percent after the company cut its forecast for profits in 2018 late last week.

 

In Currency Markets Sterling fell to its weakest since June 2017 on Monday after Prime Minister Theresa May pulled a parliamentary vote on Britain’s Brexit deal with the European Union. Though there was no immediate official announcement, a source in Whitehall, the centre of British power, said Tuesday’s vote would be delayed after colleagues told May she faced a rout. The pound fell 0.8 percent against the dollar to as low as $1.2606. It also slipped nearly 1 percent against the euro to 90.47 pence, its lowest since Sept. 5.

 

In Commodities Markets oil eased on Monday, echoing the weakness in global stock markets and erasing some of the gains made last week when producer group OPEC and other key exporters agreed to cut their crude output from January to prevent oversupply. Brent crude oil futures fell 90 cents on the day to $60.77 a barrel, while U.S. futures fell $1.06 to $51.55 a barrel. Prices closed 3 percent higher on Friday after the OPEC and some non-OPEC producers including heavyweight Russia said they would cut oil supply by 1.2 million barrels per day (bpd).

 

In US Equity Markets indices fell on Monday, led by Apple Inc, financials and healthcare stocks, falling further after its biggest slide since March last week on worries over global growth, the China-U.S. trade war and uncertainty over the Brexit deal. The S&P 500 was down 0.45 percent, at 2,621.17 and the Nasdaq Composite was up 0.16 percent, at 6,980.23. Ten of the 11 major S&P sectors were lower, led by a 1.4-percent decline in financials on expectations that the Federal Reserve would be less aggressive with monetary policy next year.

 

In Bond Markets U.S. Treasury yields were little changed to slightly higher on Monday in choppy trading as investors digested potentially destabilizing events such as Brexit turmoil and the U.S.-China trade conflict. In US mid-morning trading, U.S. 10-year note yields were little changed at 2.859 percent, from 2.85 percent late on Friday. U.S. 30-year bond yields fell to 3.13 percent, from 3.143 percent on Friday. On the short end of the curve, U.S. two-year yields were up at 2.721 percent, compared with Friday’s 2.711 percent.

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