Global equity markets slipped on Monday, hit by weak German business sentiment and another decline in oil, while Brazil slumped after incumbent Dilma Rousseff narrowly won a second term over an opponent seen as more pro-business.
Wall Street was mixed, hurt by another drop in energy shares as oil neared a four-year low. Disappointing data showing the pace of growth in the U.S. services sector slowed in October to a six-month low also sapped buying sentiment.
Government bond yields were lower after the business climate index in Germany, the Eurozone's largest economy, fell to its lowest level in almost two years.
It's very hard to put a positive spin on what's going on in Europe," said Bernard Baumohl, managing director and chief global economist at the Economic Outlook Group in Princeton, New Jersey. "Europe is the epicenter of global weakness and Germany happens to be ground zero."
Brent crude oil futures pared early losses but were down 0.7 percent to $85.55 a barrel LCOc1, after Goldman Sachs cut its price forecasts. U.S. crude oil fell 0.4 percent to $80.70 a barrel, after hitting a low of $79.44, as signs of rising global supply threatened deeper price losses. [O/R]