In European Equity Markets the pan-European Stoxx 600 index closed unchanged. Basic resources stocks – with their heavy exposure to China – falling over 1%. In terms of individual stocks, British baker Greggs jumped 16.8% to lead the Stoxx 600 after posting strong sales growth and upgrading its 2019 profit forecast. At the other end of the European blue chip index, London-based insurance group Beazley fell 5.6% after UBS cut its price target for the stock. while Danish jeweler Pandora saw its shares fell 2.2% due to its exposure to Hong Kong and the latest escalation of violence in the city.
In Currency Markets the pound jumped on Monday, hitting a six-month high versus the euro and posted its biggest daily rise in nearly a month against the greenback after the Brexit Party said it would not contest previously Conservative held seats in the UK’s election. In a significant boost for Prime Minister Boris Johnson ahead of the Dec. 12 election, Brexit Party leader Nigel Farage said he did not want anti-Brexit parties to win, so was standing down candidates in seats won by the Conservatives in 2017. The pound rallied 1% to as much as $1.2896 on the news, before easing to stand up 0.8% on the day at $1.2875.
In Commodities Markets oil prices steadied on Monday after industry data showed a drop in stocks at the Cushing, Oklahoma, but trade concerns weighed after U.S. President Donald Trump appeared to downplay reports of an imminent lifting of tariffs on China. Brent crude futures rose 14 cents to $62.65 a barrel, erasing earlier losses. U.S. West Texas Intermediate (WTI) crude futures was down 1 cent at $57.23 a barrel. Prices found some support after data showed that crude inventories at Cushing, the delivery point for WTI, fell about 1.2 million barrels in the week to Nov. 8, traders said, citing market intelligence firm Genscape.
In US Equity Markets main indexes fell on Monday, as prospects of a quick resolution to the U.S.-China trade war dimmed following comments from President Donald Trump, while escalating violence in Hong Kong added to the downbeat sentiment. The S&P 500 was down 0.36%, at 3,081.92. The Nasdaq Composite fell 0.29%, at 8,450.35. Walgreens Boots Alliance Inc jumped 5.6% after Bloomberg reported KKR & Co had formally approached the drugstore giant for what could be the biggest-ever leveraged buyout. Among other stocks, Qualcomm Inc fell 2.2% after Morgan Stanley downgraded the chipmaker to “equal-weight” from “overweight”.
In Bond Markets a decline in southern European bond markets gathered pace on Monday, pushing yields higher, with an inconclusive election in Spain adding to uncertainty in its bond market. While 10-year yields on higher-rated bonds such as German and Dutch ones were up about 2 basis points , 10-year yields across southern Europe rose much more. Italy’s 10-year bond yield was 7 bps higher on the day at 1.35%, while its gap over Bund yields touched its widest level in over two months at around 161 bps. It was last at 158 bps.The Italian 10-year yield has jumped 30 bps this month alone, compared to around 12 bps for French and German peers.