In European Equity Markets indices initially rose with most sectors trading in positive territory. However those gains were given up after Italy vowed to stick to the draft budget. The pan-European index ended provisionally lower by 0.32 percent. Fiat was among the top performers, up more than 2.98 percent by the end of trade. This followed news that the company had agreed to sell its Magneti Marelli unit to a Japanese company for $7.1 billion. At the other end was Philips, the stock was down 8.69 percent, after missing analysts’ expectations with its third-quarter results.

In Currency Markets the U.S. dollar rose on Monday as the British pound fell on news that Brexit negotiations with the European Union over Northern Ireland remain in flux and as the euro continued its slide on political uncertainty over Italy’s budget.  Sterling was down 0.84 percent in the North American session to $1.297. The euro failed to hold early gains and fell 0.66 percent from a session high of $1.1550. It was last at $1.1474. The single currency also weakened against the Swiss franc by 0.3 percent and was last at 1.432.

In Commodities Markets oil fell below $80 a barrel on Monday as Saudi Arabia pledged to raise its crude production to a record, two weeks before U.S. sanctions potentially choke off Iranian crude supplies. Brent crude futures were down 39 cents at $79.39 a barrel, while U.S. crude futures fell 45 cents to $68.67. U.S. sanctions on Iran’s oil sector start on Nov. 4 and analysts believe up to 1.5 million bpd in supply could be at risk. OPEC agreed in June to boost supply to make up for the expected disruption to Iranian exports.

In US Equity Markets indices edged down on Monday as early support from a rally in China faded, with lower oil prices and disappointing earnings signals from firms including Halliburton and Hasbro helping pull the market lower. The energy sector fell 1.59 percent, the most among the 11 S&P sectors. The S&P 500 was down 0.57 percent, at 2,751.89 and the Nasdaq Composite fell 0.18 percent, at 7,435.45. Leading health stocks lower was Bristol-Myers, which fell 5.8 percent after the U.S. health regulator said it would take more time to decide on the company’s cancer therapy.

In Bond Markets the Italian bond market was headed for one of its best days on Monday since early June after Moody’s did not slap on a negative outlook as the market had feared, but the rally cooled as the session wore on and stocks slipped back into the red. Italy’s two-year government bond yield was last down 18 basis points having hit a two-week low of 1.42 percent earlier in the session. The benchmark 10-year yield was 11 bps lower at 3.47 percent.