In European Equity Markets the pan-European Stoxx 600 was down almost 1 percent on Monday. Europe’s banking index was among the worst sectoral performers, down more than 1 percent amid renewed fears over Italy’s budget plans. The FTSE MIB index fell over 2 percent. Norway’s Norsk Hydro jumped to the top of the European benchmark after the aluminum firm got a key permit to help it restart its Alunorte refinery at half-capacity. Shares of the Oslo-listed stock rose almost 4 percent on the news.

In Currency Markets the British pound fell on Monday as the dollar rallied and traders re-assessed the chances of a breakthrough in Brexit negotiations after the encouraging headlines seen in recent days. European Union negotiators said on Friday an agreement with Britain was “very close” and European Commission President Jean-Claude Juncker said on Saturday a deal would be reached in November, if not this month. The pound fell half a percent to as low as $1.3054 against the dollar.

In Commodities Markets oil fell to around $83 a barrel on Monday, pressured by expectations that some Iranian oil exports will keep flowing after the U.S. re-imposes sanctions, easing a strain on supplies. Two companies in India, a big buyer of Iranian oil, have ordered barrels in November, India’s oil minister said on Monday. The Trump administration is considering waivers on sanctions, a U.S. government official said on Friday. Brent crude, the international benchmark, was down 94 cents to $83.22 per barrel. U.S. crude was down 81 cents at $73.53.

In US Equity Markets stock were lower on Monday, pressured by a decline in technology and energy companies. Six of the 11 major S&P sectors were lower as a 0.35 percent slide in technology stocks led the declines, followed by a 0.24 percent drop in the energy sector. The S&P 500 was down 0.14 percent, at 2,881.57 and the Nasdaq Composite was down 0.11 percent, at 7,780.09. General Electric climbed 1.6 percent, the most on the S&P, after Barclays echoed investor optimism over Larry Culp, saying the conglomerate’s new chief executive officer will be able to drive more robust restructuring.

In Bond Markets Italy’s borrowing costs jumped on Monday, as a war of words between Rome and the European Union over Italian budget plans escalated. As Italian bond yields jumped by as much as 30 basis points, the Italian/German 10-year bond yield gap – a closely watched measure of country risks – blew out to more than 300 bps. Italy’s 10-year bond yield rose its highest level since early 2014 at 3.63 percent, two-year yields soared 30 bps to a four-month high at 1.656 percent.