In European Equity Markets the pan-European Stoxx 600 restored early gains to close 0.14% higher as markets reacted positively to a series of potential mergers and earnings. Telecoms and financial services stocks closed with 1.5% and 1.7% gains, while autos fell 0.9%. Heineken half-year profit missed expectations on higher costs, with the Dutch drinks company reporting a net profit of 1.05 billion euros, causing its share price to fell 6.2%. Spain’s Bankia saw its second-quarter net profit fall 32% due to lower trading income, causing its stock to fall 2%.

In Currency Markets sterling fell more than 1% to a 28-month low on Monday, as more investors scrambled to factor in the growing risk of a no-deal Brexit and the chance that new British Prime Minister Boris Johnson will call an early election. As Johnson repeated to British media that while he wanted to secure a new trade deal the UK was going to leave the EU on Oct. 31 with or without an agreement, sterling had fallen 1.1% versus the dollar to $1.2242 and 1.1% to 90.855 pence per euro. Against the dollar sterling has now lost 7% of its value since May.

In Commodities Markets oil prices edged higher on Monday as the prospect of an expected interest rate cut by the U.S. Federal Reserve overshadowed pessimism over U.S.-China trade talks and worries about slower global economic growth. Brent crude rose 7 cents to $63.53 a barrel, while U.S. WTI crude futures were up 15 cents at $56.35 a barrel. Crude prices were also supported by supply risk as tensions remain high around the Strait of Hormuz, through which about a fifth of the world’s oil passes.

In US Equity Markets stocks retreated from record highs on Monday, weighed by technology shares ahead of high profile earnings including that of Apple, which will test the impact of trade tensions on global growth. The S&P 500 was down 6.58 0.22%, at 3,019.28. The Nasdaq Composite fell 0.74%, at 8,268.17. Among other decliners, the communication services sector fell 0.77%. Pfizer fell 2.29% after the drug-maker cut its full-year profit and revenue forecast in an unexpected release of its quarterly results to go with the deal announcement.

In Bond Markets U.S. Treasury yields were lower across the board on Monday, in line with falls around the world amid global economic uncertainty, as investors await a widely expected interest rate cut by the Federal Reserve this week. In morning trading, U.S. 10-year note yields fell to 2.05% , from 2.08% late on Friday. Yields on 30-year bonds slid to 2.58%, from 2.60% on Friday. At the short end of the curve, two-year yields slipped to 1.84%, from Friday’s 1.87%. With a Fed cut factored in, investors will focus on the Fed’s statement, which should hint at its guidance on future cuts.