In European Equity Markets the pan-European Stoxx 600 finished 0.29% below the flat-line, auto stocks adding 2 % to lead gains while the food and beverage sector fell 1.7%. Danske Bank led the Stoxx 600 with a 9% climb, while fellow Scandinavian banks Swedbank and Nordea Bank also gained more than 5%. German media company Prosiebensat1 climbed 5% after UBS upgraded the stock from neutral to buy and raised its target price. Air France KLM shares fell 9.7% after the publication of the airline’s traffic figures for August, which came in weaker than expected.
In Currency Markets the euro rose on Monday after a report that Germany may boost fiscal stimulus increased hopes that governments will act to boost growth in the region, though expectations of further central bank easing kept a lid on gains. The euro gained to $1.1047 against the greenback, up 0.18% on the day, after earlier trading as low as $1.1014. Euro gains were capped, however, before the European Central Bank’s meeting on Thursday, when the central bank is expected to introduce a new wave of monetary stimulus.
In Commodities Markets oil prices rose more than 1% on Monday after the new Saudi energy minister, Prince Abdulaziz bin Salman, confirmed expectations that there would be no radical change in his country’s oil policy. Prince Abdulaziz, son of Saudi King Salman and a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), replaced Khalid al-Falih on Sunday. Brent crude futures gained 74 cents, or 1.2%, to $62.28 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose $1.06, or 1.9%, to $57.58 a barrel.
In US Equity Markets indexes edged higher on rising expectations of monetary stimulus from global central banks to boost growth, while technology and healthcare stocks kept a check on gains. The S&P 500 was up 0.17%, at 2,983.76 and the Nasdaq Composite was flat. Boeing Co fell 1.17% after it suspended load testing of its new widebody 777X aircraft over the weekend as media reports said a cargo door failed in a ground stress test. Communication sector was lifted by AT&T Inc’ 4.30% gain after shareholder Elliott Management Corp disclosed a $3.2 billion stake in the company.
In Bond Markets Germany’s bond yields rose to one-month highs on Monday after a report that the country is considering the creation of a “shadow budget” that would allow Berlin to boost public investment above and beyond limits set by its strict national debt rules. Yields across the single currency bloc were higher on the back of encouraging economic data and proceeding expectations for aggressive European Central Bank policy action at this week’s closely-watched meeting. Germany’s 10-year Bund yield rose to a one-month high at -0.565%.