Equity markets lose ground

Equity markets were under pressure at the start of the week. A decline in financial stocks led the move lower, as European indices closed down almost 2% and the US shed around 1%

Government bond yields in the core markets continued to fall with the longer end of curves again leading the way. In the US, 10-year yields fell another 3-4 bps to close just under $1.60, with similar declines in equivalent German and UK bonds

On the currency markets, the euro is trading at just over $1.12 against the dollar, the mid-point of the $1.10 to $1.14 range that has prevailed since June. Meanwhile, sterling is largely unchanged against the single currency at just under 87p

Mario Draghi says the ‘ recovery in the euro area is expected to continue at a moderate pace but with slightly less momentum than envisaged in June’, adding that the ECB will ‘continue to monitor economic and financial market developments very closely’ and is prepared to take further policy action  ‘if warranted’

Data due today includes consumer confidence in the US and the latest CBI retail sales survey in the UK