It’s up 20% from a nearly two-year low hit on Sept. 29. German arms company Rheinmetall was among the top-performing European stocks on Monday, rising 8.2 percent in afternoon trade, after agreeing to buy Spain’s Expal Systems. The DAX index posted one of its biggest rallies as global markets cheered signs of easing U.S. inflation last week, despite the U.S. Federal Reserve hinting at further rate hikes and signs of weakness in the eurozone economy. —Jenny Reed

US stocks open lower

U.S. stocks opened lower on Monday as investors took a breather from last week’s market rally. The Dow Jones Industrial Average opened just below the flat line, while the S&P 500 was 0.6% lower in early deals. The Nasdaq Composite fell 1.3%. — Karen Gilchrist

Stocks on the move: Rheinmetall rises 7% on takeover in Spain

Shares in Rheinmetall rose 7.5 percent in early afternoon after the German arms maker announced a deal to buy Spanish explosives and ammunition company Expal Systems for 1.2 billion euros ($1.24 billion). At the bottom of the Stoxx 600, British oil and gas company Harbor Energy fell 7.5%. – Elliott Smith

We still need to be prepared for higher interest rates, the analyst says

Sunil Krishnan, head of multi-asset funds at Aviva Investors, discusses the October consumer inflation reading.

Eurozone industrial production rose in September

Eurozone industrial production strengthened much more than expected in September, Eurostat said on Monday, rising 0.9% month-on-month, for a year-on-year rise of 4.9%. Economists polled by Reuters had expected gains of 0.3 percent on a monthly basis and 2.8 percent on a yearly basis. August’s rate was also revised upwards to a 2% monthly increase from 1.5%. – Elliott Smith

Stocks in motion: Informa up 6%, Roche down 4%

Informa shares rose more than 6% in early trade to lead the Stoxx 600 after the British publishing company upgraded its 2022 guidance. At the bottom of the Stoxx 600, Roche fell 4.7% after the Swiss drugmaker’s Alzheimer’s drug candidate failed in two long-awaited trials. – Elliott Smith

Bitcoin falls below $16,000 to lowest level since November 2020 as FTX saga continues

CNBC Pro: A retail stock just hit an all-time high — and Bank of America thinks it needs to go even further

This year’s bear market has wiped out trillions of dollars in market capitalization from the stock market, but some stocks have significantly outperformed during that time. Bank of America identified three retail stocks that broke the trend and says one remains a buy. Professional subscribers can read more here. — Zavier Ong

CNBC Pro: UBS Says Deflation Is On The Way — And Shares 8 Global Stocks To Play It

Swiss bank UBS has predicted “sharp” deflation in 2023. He said weak growth alongside “mechanical” indicators such as the easing of supply chain bottlenecks and rising goods inventories would see prices fall next year. The investment bank screened for stocks that would benefit from such an environment. CNBC Pro subscribers can read more about their predictions and eight stocks we’ve highlighted from their list. — Ganesh Rao

European markets: Here are the opening invitations

European markets are set to open in positive territory on Monday, with global markets still buoyed by last week’s US inflation data, which showed prices had risen less than expected in October. Britain’s FTSE is expected to open 13 points higher at 7,338, Germany’s DAX 45 points at 14,283, France’s CAC 30 points at 6,627 and Italy’s FTSE MIB down 136 points at 24,459, according to IG data. The data releases include eurozone industrial production figures for September. There are no significant gains. — Holly Elliott