In European Equity Markets the pan-European Euro Stoxx 600 index closed 0.94 percent lower with all major bourses and most sectors pushing lower. Ocado shares rose 1.78 percent on Monday after a report said Marks & Spencer was in talks about a takeover of the company’s supermarket operations. M&S shares were up by 0.21 percent. Meanwhile, shares of MorphoSys fell 7.62 percent after news that some if its patents were deemed invalid by a U.S. court.  Tesco were down 1.5 percent by the closing bell after announcing they may cut thousands of jobs by replacing staff with vending machines.

In Currency Markets the U.S. dollar was little changed against a basket of currencies on Monday as traders were cautious about staking new positions ahead of the Federal Reserve’s two-day policy meeting and trade talks between China and the United States. The euro reached a 10-day high against the greenback as investors consolidated positions before votes in the British parliament on Tuesday aimed at breaking a Brexit deadlock. The euro rose to a near two-week peak at $1.1438. It last traded 0.21 percent at $1.1429.

In Commodities Markets oil headed for its biggest one day decline in a month on Monday on evidence of yet more growth in U.S. crude supply, although the price is still on course for its strongest January gain for 14 years. Brent crude oil futures were down $1.49 at $60.15 a barrel, down 2.5 percent on the day in their largest one-day percentage fall since late December, while U.S. futures fell $1.71 to $51.98 a barrel. U.S. energy companies last week increased the number of rigs looking for new oil for the first time since late December to 862.

In US Equity Markets stocks fell on Monday as weak forecasts from Caterpillar Inc and Nvidia Corp fueled worries about a slowdown in China taking a bigger bite off corporate profits. Shares of Caterpillar, the world’s largest heavy equipment maker, fell 8.4 percent as its quarterly profit widely missed Wall Street estimates, hit by softening demand in China and higher manufacturing and freight costs. Its full-year earnings outlook also fell short of estimates. The S&P 500 was down 32.68 points, or 1.23 percent, at 2,632.08 and the Nasdaq Composite was down 103.63 points, or 1.45 percent, at 7,061.23.

In Bond Markets Greek 10-year borrowing costs dropped to a four-month low on Monday after the country’s parliament approved a deal that changes the name of neighbouring Macedonia, ending a 28-year row and paving the way for a five-year bond sale. The yield on 10-year Greek debt was down 1.5 basis points at 4.05 percent, its lowest since late September last year, and is down 35 bps from the start of the year. Elsewhere, core euro zone government bond yields were 1-2 basis points higher. Austria, meanwhile, announced that it would sell a new 10-year bond via syndication.