In European Equity Markets the pan-European STOXX 600 came off its lows, to finish flat Monday session while major sectors were pointing in different directions by the market close. The U.K.’s FTSE 100 slipped 0.12 percent, while France’s CAC 40 fell 0.13 percent and Germany’s DAX ended down 0.34 percent. In peripheral markets, Italy’s FTSE MIB rose 0.49 percent. Utilities was the second top-performing sector. Endesa was a top performer, closing up 1.4 percent after Goldman Sachs raised its price target and rating on the stock. British engineer GKN jumped more than 4 percent after suitor Melrose said it planned on meeting GKN shareholders, after the engineering firm rejected a multi-million acquisition proposal last week.

In Currency Markets the euro climbed to a three-year high to the dollar on Monday, nearing the $1.23 line as investors pushed up bets in the backdrop of growing economic optimism in the euro zone and expectations the central bank may tighten policy soon. The euro was up 0.7 percent at $1.2284 after hitting a high of almost $1.23, adding to gains made last week after the ECB said it could revisit its communication stance in early 2018. That heightened expectations policymakers were preparing to reduce the stimulus program. Against the yen, the dollar slipped to its lowest since mid-September as comments from the head of the Bank of Japan highlighted Japan’s economic recovery. The dollar was down 0.4 percent at 110.585 yen. The British pound continued to push up highs not seen since the June 2016 vote to leave the European Union.

In Commodities Markets oil traded near a three-year high of $70 a barrel on Monday on signs that production cuts by OPEC and Russia are tightening supplies, but analysts warned of “red flags” due to surging U.S. production. International benchmark Brent crude futures were trading 3 cents lower at $69.84, having risen above $70 earlier in the session. U.S. West Texas Intermediate (WTI) crude futures were up 22 cents at $64.52 a barrel. Trading was relatively slow due to a national holiday in the United States. A production-cutting pact between the Organization of the Petroleum Exporting Countries, Russia and other producers has given a strong tailwind to oil prices, with both benchmarks last week hitting levels not seen since December 2014.

In US Equity Markets trading activity is closed in light of Martin Luther King, Jr. Day.

In Bond Markets Euro zone borrowing costs pulled back from multi-month highs on Monday after a hefty selloff last week on expectations that the European Central Bank could end its massive stimulus sooner than anticipated. German Bundesbank President Jens Weidmann, normally one of the staunchest critics of the ECB’s ultra-easy policy, said late on Friday the risk of an imminent hike in interest rates was low. Those comments bought some respite to battered bond prices, but overall trade was subdued with U.S. markets closed for a holiday on Monday. Most euro zone government bond yields were down 1-2 basis point on the day. Germany’s 10-year year Bund yield was at 0.50 percent, off a five-month high hit on Friday at 0.54 percent. Two-year yields were around 2 basis points below more than six-month peaks hit last week.