In European Equity Markets stocks were mixed Monday, amid heightened concerns of an escalating trade war between the world’s two largest economies. The pan-European Stoxx 600 was marginally higher, with sectors and major bourses pointing in opposite directions. Europe’s auto stocks were the worst performers, down 1.15 percent amid renewed trade tensions. SBM Offshore jumped to the top of the European benchmark after the company announced a final settlement to resolve alleged improper sales practices. Shares of the Amsterdam-listed stock rose 11.74 percent on the news.

In Currency Markets the British pound was set on Monday for its biggest daily decline against the euro in more than three months as concerns grew about the progress of Brexit negotiations. Sentiment was also further sapped by UK manufacturing data that underscored the weak state of the British economy. Against the dollar, the British currency fell 0.8 percent to $1.2855 while there were bigger losses against the euro. Latest CFTC data indicates investors have ramped up their short positions on the British currency, with overall net short bets reaching their highest level since early May 2017.

In Commodities Markets oil prices rose on Monday, supported by concerns that falling Iranian output will tighten markets once U.S. sanctions bite from November, but gains were limited by higher supply from OPEC and the United States. Brent crude oil was up 60 cents at $78.24 a barrel. U.S. crude was 15 cents higher at $69.95. The two benchmarks have risen strongly over the last two weeks with Brent gaining more than 10 percent on expectations that global supply will tighten later this year. U.S. sanctions are already curbing exports from Iran.

In US Equity Markets trading activity was closed due to Labor Day holiday.

In Bond Markets Italy’s two-year government bond yield rose to a three-month high on Monday as positive sentiment after a Fitch rating review proved fleeting. Shorter-dated Italian bond yields rose, reversing falls earlier in the session which analysts credited to Fitch’s decision on Friday to leave Italy’s bond rating unchanged at BBB. Although the outlook was revised down to negative. Italy’s two-year bond yield briefly reached a three-month high at 1.51 percent. Germany’s 10-year bond yield hit a two-week low at 0.314 percent.