European stocks started the week in the green as comments by ECB president Mario Draghi at Jackson Hole last week were seen as dovish. Asian markets closed mixed, with the Nikkei managing a gain of nearly half a percentage point.
Here are five things that matter for markets now:
- The French government resigned, a day after Finance Minister Arnaud Montebourg called for fiscal relaxation, arguing that deficit-cutting measures in place since the financial crisis were hurting the eurozone.
- As Ukraine marked its national day, rebels paraded captive Ukrainian soldiers in the cities they hold and Russia said it wants to send a second humanitarian aid convoy to Ukraine's regions where pro-Russian rebels are active. In the latest twist in the conflict, Ukraine's government said on Monday morning its forces were engaged in conflict with a separatist armored column six miles from the border with Russia.
- German business confidence fell for the fourth month in a row and was lower than forecast. The Ifo institute's business climate index was 106.3 in August from 108 in July and vs. expectations that it would drop to 107.
- Swiss drug maker Roche agreed to buy U.S. biotech firm InterMune (ITMN) for $8.3 billion. The price is a 38% premium on the August 22 closing price for InterMune.
- Burger King (BKW), the second-largest burger chain in the U.S., is in talks with Tim Hortons (THI) of Canada to acquire it and move its headquarters there, in order to relocate to a lower-tax country.