* European cash equity markets are mostly lower this morning (FTSE 0.0%, DAX -0.2%, CAC -0.3%).
* Financial stocks lead declines while basis resources outperform on higher metal prices. Maersk and Fiat both spike on M&A chatter.
* Risk sentiment skewed to the downside after the US and South Korea hold military drills over the weekend. North Korea calls manoeuvres “reckless”.
* Core EU bonds reversed early losses to trade flat-to-higher at midday; Treasuries move above overnight highs.
* Moves in currency space are limited; Yen one of the better performers on risk off flows.
* Oil prices flat, gold slightly higher.
* European Commission have repeating that sufficient progress will need to be made in Brexit talks before trade negotiations can begin.
* Spokeswoman for UK PM May said the government is confident they will have made enough progress by October to take talks to the next stage.
* Bundesbank said German 2017 economic growth may exceed their June forecasts as they see strong economic momentum in the summer months. They also expect core inflation to pick up in the coming months.
* Swiss Money Supply – M3 (Jul) +4.0%, previous +4.1% revised to +4.0%
* Greek Current Account Balance (Jun) €0.842 Bln, previous -€0.582 Bln
* Portuguese Current Account Balance (Jun) -€1.420 Bln, previous -€1.056 Bln
* Ahead, futures poiting to a flat open for US cash equity markets with Chicago Fed National Activity and Canadian wholesale trade sales on tap.