The Eurozone PMI fell to 55.8 in July from 56.3 in June

European equities traded initially lower on euro strength. Later in the session, a fall in euro strength reversed the decline. The German Dax underperformed (around -0.35%) on the back of weak carmakers. US equities open with modest losses.

The Eurozone PMI fell to 55.8 in July from 56.3 in June. The consensus expected a minor decline to 56.2. Increases in manufacturing costs are starting to slow, with the rise in input costs the lowest since November. Meanwhile, growth in new orders and employment is still strong.

The Saudi Energy and Industry minister pushed to improve implementation of the production cuts from the nations participating in the deal as compliance dropped from 110% in May to 92% in June. He also said Nigeria and Libya -- both exempt from cutting -- will be allowed to increase output to their targeted levels.

Poland's president Duda vetoed part of a controversial overhaul of the judiciary that's brought national protest and pitted the nation's government against its partners in the EU and the US. Duda ordered a rewrite of the two bills he rejected and said he'd approve a final piece of legislation giving politicians more control of lower courts.

According to the Athens Stock exchange filing, Greece is looking to sell five-year bonds on Tuesday. This marks the first return to the debt market since 2014. With the sale, the government of Prime Minister Tsipras is seeking to test the market appetite as the exit from the current bailout program in August 2018 draws nearer.

In an update to its World Economic Outlook, the IMF changed its annual GDP forecast for the UK to 1.7% this year, compared to a forecast of 2% growth made in April. The 2018 forecast was unchanged at 1.5%. Reasons for the decline are rising inflation, resulting from the weaker pound, which pressures household spending.

The Republican effort to repeal and replace Obamacare faces a major test this week as the US Senate will decide whether to move forward and vote on a bill whose details and prospects are still uncertain. President Trump, after initially suggesting that he was fine with letting Obamacare collapse, has urged the senators to hash out a deal.