The Stoxx 600 Automobiles & Parts index was among the worst performing sectors ahead of Trump's tariff announcement.
US 10Y yields rose above 3.00% as TSY bears seek to make a decisive break above the key level; Italian government yields fell 6-8 basis points amid growing hopes Italian ministers, who meet later on Monday, will agree a market-friendly 2019 budget and a report that FinMin Tria will hold the deficit below the EU limit of 3%.
In the latest update on the neverending Brexit saga, the Times reported that the EU is secretly preparing to accept a frictionless Irish border after Brexit in a move that raises the prospect of PM May striking a deal by the end of the year.
Over the weekend the WSJ reported that China is considering skipping trade talks offered by the US last week and that were planned for later this month as the country is not prepared to negotiate with a “gun pointed to its head”.
Sterling (+0.11%) is a shade stronger this morning.