In European Equity Markets stocks decreased on Monday with automakers hitting their lowest level this year after anti-trust regulators opened an investigation, while price war worries hurt airlines. The pan-European STOXX 600 fell 0.2 percent as gains in heavyweight financials helped offset losses in other sectors. Euro zone bluechips ended flat. Shares in carmakers fell after EU antitrust regulators said they were investigating allegations of a cartel, with Volkswagen, Peugeot, Daimler, Renault and BMW between 1.3 and 2.8 percent lower. Budget airline Ryanair fell 1.1 percent after it warned summer fares would face sharp cuts, though it said profit rose 55 percent in its first quarter.

In Currency Markets the dollar edged up from its lowest level in more than a year on Monday, assisted by stronger-than-expected readings on the U.S. economy, as investors continued to watch developments on U.S. President Donald Trump’s inner circle’s possible ties to Russia. The euro was last trading at $1.1634, slightly below a high of $1.1684 hit earlier in the day, its highest since August 2015. The dollar slid to five-week lows against the yen, with the greenback falling to 110.62. Sterling pushed higher against the greenback, with the pound rising 0.25 percent to $1.3025. The dollar index was at 93.84 after touching 93.65 overnight, its lowest since June 22, 2016.

In Commodities Markets oil rose on Monday, erasing early losses after leading OPEC producer Saudi Arabia pledged to cut its exports to help speed the rebalancing of global supply and demand.  Brent September crude futures were up 44 cents on the day at $48.50 a barrel, having risen from a session low of $47.68. NYMEX crude for September delivery rose 39 cents to $46.16. Spot gold was up 0.1 percent at $1,255.79 an ounce, having touched $1,257.18, its highest since June 26. Elsewhere, silver gained 0.2 percent to $16.50 an ounce, platinum rose 0.1 percent to $934.80 and palladium was up 0.4 percent at $848.25.

In US Equity Markets  the S&P 500 and the Dow were pulled lower by losses in Johnson & Johnson in late morning trading on Monday, while the Nasdaq was little changed ahead of Google parent Alphabet’s earnings report later in the day. The Dow was down 0.32 percent, at 21,512.02, the S&P 500  was down 0.21 percent, at 2,467.11. The Nasdaq Composite was down 0.03 percent, at 6,386.03. Johnson & Johnson’s shares fell 1.5 pct after South Korea’s Samsung Bioepis said it started U.S sales of the company’s top-selling drug Remicade. Halliburton was down 2.8 percent after the oilfield services provider warned about flattening growth in North American rig count.

In Bond Markets U.S. Treasury yields edged higher on Monday as investors awaited Wednesday’s statement from the Federal Reserve’s July meeting for new indications on when the U.S. central bank is likely to begin paring its bond holdings and next raise interest rates. Benchmark 10-year notes were last down 4/32 in price to yield 2.25 percent, up from 2.23 percent on Friday.

European Equity Upgrades/Downgrades

• NCC GROUP (NCC LN) DOWNGRADED TO SELL FROM HOLD AT BERENBERG
• SALZGITTER (SZG GY) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC
• AIR FRANCE (AF FP) UPGRADED TO BUY FROM HOLD AT KEPLER CHEUVREUX
• SAINT GOBAIN (SGO FP) UPGRADED TO BUY FROM HOLD AT HSBC
• DRAX (DRX LN) UPGRADED TO OUTPERFORM FROM UNDERPERFORM AT RBC
• GIVAUDAN (GIVN VX) UPGRADED TO MARKET PERFORM FROM UNDERPERFORM AT MAINFIRST BANK
• PUBLICIS (PUB FP) UPGRADED TO NEUTRAL FROM UNDERPERFORM AT CREDIT SUISSE