In European Equity Markets the pan-European Stoxx 600 ended lower by 1.00 percent with almost every sector in the red. The tech sector was the worst performer, down by almost 3.58 percent. SAP was down 5.52 percent after making a deal to buy Qualtrics for $8 billion. Shares of Austrian chip-maker AMS fell 22.41 percent after other suppliers to tech giant Apple cut their forecasts. The German-listed Infineon also shed value following demand fears, losing 7.31 percent during the session. On the other hand, oil and gas stocks were the top performers.

In Currency Markets the dollar reached a 16-month high on Monday against a basket of currencies as investors built bets on a Federal Reserve interest rate increase next month, and political risks in Europe which put pressure on the euro and the pound. Fears about a no-deal Brexit and a growing rift in Europe over Italy’s budget have also boosted the dollar. The single currency fell 0.63 percent versus the dollar to its lowest since June 2017 at $1.124. The pound was down 0.66 percent at $1.2893 and the euro was marginally lower against the pound at 87.36 pence.

In Commodities Markets oil prices rose about 1 percent on Monday, breaking a stretch of losses, after Saudi Arabia said OPEC and its partners believed demand was softening enough to warrant an output cut of 1 million barrels per day next year. Saudi Energy Minister Khalid al-Falih said the Organization of the Petroleum Exporting Countries and its allies agree that technical analysis shows a need to cut oil supply next year by around 1 million bpd from October levels. Brent crude futures were up 70 cents at $70.88 a barrel. U.S. crude rose 60 cents to $60.79 a barrel,

In US Equity Markets stocks fell for a third day on Monday, as a decline in Apple Inc shares following weak forecasts from two of its suppliers hit the technology sector. The iPhone maker fell 3.8 percent after laser sensor maker Lumentum Holdings Inc cut its forecast, saying a large unnamed customer had materially cut orders. The S&P 500 was down 0.88 percent, at 2,756.54 and the Nasdaq Composite fell 1.56 percent, at 7,291.19. The S&P 500 Information Technology index fell 2.0 percent, while the Philadelphia SE Semiconductor index declined 3.3 percent.

In Bond Markets Italy’s government bond yields rose on Monday as a deadline to resubmit the country’s budget to the European Commission loomed and fears grew about the future of Italian bank Carige. Two-year bond yields rose to 1.29 percent, their highest level in over a week, while the 10-year bond yield gap between Italy and Germany pushed out to 306 basis points — its widest in almost two weeks. German 10-year Bund yields fell to their lowest in almost two weeks at 0.38 percent.