In European Equity Markets closed mixed as investors focused on Italian politics, trade relations between the U.S. and China, and a dip in oil prices. While major bourses and most sectors were in the red, strong performances from the health care and travel sectors boosted the broader index. Financial services stocks fell the furthest on Monday, closing 1.1 percent lower. Close behind were telecoms, 0.9 percent lower. The U.K.’s BT was among the poorest performing companies within the sector, down 2.4 percent. The Portuguese energy firm EDP also rose 9 percent by the end of Monday’s trade after the Chinese group Three Gorges presented a takeover bid.

In Currency Markets the US dollar fell to one-week lows on Monday as investors questioned whether a rally that last week sent the greenback to more than four-month highs had run out of steam. The dollar has gained as a rise in U.S. Treasury yields highlighted the wide interest rate gap between the United States and other countries. But the gain was paused by soft April U.S. consumer price data published last week that introduced doubts about expectations that the Federal Reserve would raise rates as many as four times in 2018. The USD index fell 0.29 percent on Monday to 92.270. It has fallen from 93.416 last Wednesday, the highest since Dec. 22.

In Commodities Markets oil prices steadied below 3-1/2 year highs on Monday as resistance emerged in Europe and Asia to U.S. sanctions against major crude exporter Iran, while rising U.S. drilling pointed to higher North American production. Brent crude was up 20 cents at $77.32 a barrel and U.S. light crude rose 10 cents to $70.80. Both oil futures contracts hit their highest since November 2014 last week at $78 and $71.89 a barrel respectively as markets anticipated a sharp fall in Iranian crude supply once U.S. sanctions bite later this year. U.S. drillers added 10 oil rigs in the week to May 11, bringing the total to 844, the highest level since March 2015, energy services firm Baker Hughes said on Friday.

In US Equity Markets stocks notched up gains on Monday on signs of easing trade tensions between the United States and China after President Donald Trump softened his stance on Chinese technology company ZTE Corp. The S&P 500  was up 0.37 percent, at 2,737.83 and the Nasdaq Composite was up 0.55 percent, at 7,443.64. Eight of the 11 major S&P sectors were higher, with technology, healthcare and energy sectors leading the gains. Viacom Inc declined 5.8 percent after CBS Corp filed a lawsuit to stop controlling shareholder Shari Redstone from continuing with her plan to merge it with Viacom. CBS rose 4.9 percent.

In Bond Markets German 10-year bond yields rose to a 2-1/2-week high on Monday after the European Central Bank’s Francois Villeroy de Galhau said policymakers could give new guidance on the timing of its first rate hike as the end of its bond stimulus approaches. The move higher in German debt rippled across bond markets, with most 10-year bond yields in the euro area up 3-5 basis points on the day. The Bank of France governor said that whether the decision to end the ECB’s net asset purchases came at its September or December meeting was “not a deep existential question”. German 10-year bond yields rose to 0.61 percent, its highest levels since April 26.