In European Equity Markets the pan-European STOXX 600 index closed up 1.1 percent, off session highs, while all major sectors posted solid gains. The U.K.’s FTSE 100 rose 1.1 percent by the close, while France’s CAC 40 jumped 1.2 percent and Germany’s DAX 1.4 percent. In peripheral markets, the only major index that fell into the red by the close was the Athens Stock Exchange. Chemicals was one of the top performing sectors Monday, closing up 1.5 percent, after several rating upgrades boosted sector sentiment. Polymer solutions firm Victrex rose over 3 percent, following an upgrade from Bank of America Merrill Lynch. Umicore jumped over 6 percent after Credit Suisse and Citigroup raised their price target on the stock. Heineken pared some of its losses, but closed down 1.8 percent, after the brewer lowered its margin growth target for 2018.

In Currency Markets Sterling slipped back towards a three-week low against the dollar on Monday, weighed down by uncertainty among investors over whether Britain would succeed in securing a post-Brexit transition period. The pound skidded on Friday after the EU’s chief Brexit negotiator Michel Barnier warned a transition deal was far from assured. The pound slipped 0.2 percent to $1.3798, close to Friday’s three-week low of $1.3764. It was also 0.3 percent weaker against the euro at 88.82 pence. The pound has climbed more than 3.5 percent against the dollar over the past two months, on the back of perceived progress on talks with the EU on what a future relationship between the two will look like when Britain leaves in 2019, as well as some cautious optimism on the economy. But it is now down almost 4 percent since hitting an 18-month high in late January.

In Commodities Markets oil rose on Monday, as it began to recoup some of last week’s steep losses as global equities steadied after their biggest one-week decline in two years. Brent crudefutures rose 67 cents, or 1.1 percent, to $63.46 a barrel. U.S. West Texas Intermediate crude futures for March delivery rose 77 cents to $59.97 a barrel, a 1.3 percent gain. Earlier in the session, U.S. crude rallied to $60.83. Consumption remains robust, even though rising U.S. crude production has knocked oil off its 2018 highs above $70 and threatened the efforts of the Organization of the Petroleum Exporting Countries to prop up prices by reining in supply. U.S. energy companies added 26 oil rigs looking for new production last week, boosting the count to 791, the highest since April 2015, energy services company Baker Hughes said on Friday.

In US Equity Markets main indexes rose for a second straight session on Monday, led by gains in technology and financial stocks, after its worst week in two years as the specter of rising inflation led to fears of accelerated interest rate hikes. Nine of the 11 major S&P sectors were higher, with only the interest-rate sensitive utilities and real estate indexes in the red. The S&P 500 was up 0.9 percent, at 2,645.43. The Nasdaq Composite was up 1.2 percent, at 6,961.37. Among stocks, General Dynamics fell 0.8 percent after the U.S. defense contractor said it would buy smaller rival CSRA for about $6.8 billion. CSRA jumped 32 percent. Cisco was up 2.6 percent and American Express gained 1.5 percent after Instinet upgraded the two Dow components to “buy”.

In Bond Markets U.S. Treasury yields rose across most maturities on Monday, with benchmark 10-year yields hitting a four-year high, benefiting from strong U.S. economic growth prospects and global central banks normalizing years of easy monetary policy. U.S. 10-year yields, which move inversely to prices, have risen in three of the last five sessions. Since a 10-month low hit in September, 10-year yields have risen nearly 90 basis points. In late morning NY trading, U.S. 10-year yields were up at 2.849 percent, from 2.831 percent late on Friday. Earlier in the session, 10-year yields hit 2.902 percent, the highest since January 2014. U.S. 30-year bond yields fell to 3.123 percent, from Friday’s 3.139 percent. The yield on this maturity touched an 11-month peak of 3.139 percent earlier in the session.