In European Equity Markets stocks fell more than 1 percent on Friday while German and French indexes slid by their most in nearly 5 months as jitters in the bond markets over political risk looked to have spilled over into equities. The STOXX 600 was down 1.2 percent in afternoon trading and was poised for its third straight session of losses. European banks, the sector most sensitive to bond spreads, fell more than 2 percent while the basic resources slid more than 3 percent. Meanwhile, UBS warned on Friday that French stocks appeared “too relaxed” given the impact that uncertainty around the election has had on government bonds.

In Currency Markets the dollar was slightly weaker against a basket of currencies on Monday as investors worried that a speech by U.S. President Donald Trump on Tuesday would not provide many details on his economic agenda.  The dollar fell 0.40 percent against the euro to $1.0603 and was little changed against the yen at 112.23 yen. The euro also benefited from polls showing that far-right anti-EU leader Marine Le Pen was losing traction in France’s presidential race. Sterling fell to a 12-day low of $1.2382 on a report that Scotland was preparing to call another independence referendum when formal Brexit negotiations are triggered in March. The dollar index was last down 0.19 percent against a basket of six major currencies at 100.90.

In Commodities Markets oil prices edged higher on Monday as investors showed record confidence that prices would rise further, though gains were capped by the prospect of faster growth in U.S. oil production. On its second to last day as the front-month contract, Brent futures for April delivery were up 0.3 percent, at $56.15 a barrel. U.S. West Texas Intermediate crude was up 0.4 percent, to $54.20 per barrel. Spot gold rose 0.2 percent to $1,258.5 an ounce. Spot silver gained 0.1 percent percent to $18.37 an ounce. Platinum gained 1.7 percent to $1,040.7, having earlier marked its strongest in nearly five months at $1,041.70. Palladium rose 1.6 percent to $780.4.

In US Equity Markets  the S&P 500 and the Dow Jones Industrial Average edged up to record intraday highs on Monday, after President Donald Trump’s said he would make a “big” statement on infrastructure on Tuesday. The Dow was up 0.03 percent, at 20,828.45. The S&P 500 was up 0.04 percent, at 2,368.18 and the Nasdaq Composite was up 0.04 percent, at 5,847.87. Tesla fell nearly 4 percent after Goldman Sachs downgraded the company’s stock to “sell” from “neutral” and lowered its price target. La Jolla Pharmaceutical rose 75 percent following the success of its lead experimental drug in a late-stage study. Shutterstock lost 13.4 percent after the stock image provider reported quarterly revenue that missed analysts’ average estimate.

In Bond Markets  U.S. Treasury yields rose modestly on Monday from multi-week lows touched Friday on anticipation that any references to pro-growth economic policies in a speech by U.S. President Donald Trump on Tuesday could drive yields higher. U.S. 10-year Treasury notes were last down 7/32 in price to yield 2.342 percent, from a yield of 2.317 percent late Friday. Two-year notes were last down 1/32 in price to yield 1.169 percent, from a yield of 1.145 percent late Friday.