US. stocks retreated in light trading, declining 0.2%, as investors assessed the latest political developments in Washington before the start of earnings season.
Investors may have refrained from large bets Monday without any direction from the bond market, which was closed for Columbus day, while the minutes from the Federal Reserve’s last meeting are due Wednesday.
European stocks advanced, after falling the most in more than a month Friday.
The Stoxx Europe 600 gained 0.2%. Spanish stocks lead the rally with a 0.5% jump after a senior member in the Catalan administration called for dialogue with Spain. German equities also aided the advance following solid economic data releases.
Catalan President Puigdemont is expected to address the regional Parliament in Barcelona at 6pm this evening which should help to give the markets more clarity on how the situation is developing.
In the UK, Michel Barnier, the European Union’s chief Brexit negotiator, and his U.K. counterpart David Davis begin the fifth round of talks on the U.K.’s departure from the EU.
In Asia overnight, Japanese equities gained 0.6% after the market reopened, while Chinese equities also gained rising 0.1%.