(Bloomberg) — European stocks climbed as analysts speculated the market could be relatively resilient to the tech-led downdraft in the U.S. The pound sank on concern the U.K. is inching closer to a no-deal Brexit.

The Europe Stoxx 600 rose Monday with broad gains led by automakers. Oil extended its retreat below $40 a barrel as a price cut by Saudi Arabia signaled fuel consumption is wavering in key markets. Futures on the S&P 500 Index turned higher. The dollar gained while Treasury yields were little changed.

Investors returning Tuesday from the U.S. Labor Day holiday will need to take stock of a rally that’s fizzling as doubts grow over positioning and valuations that look extreme. While futures on the broader U.S. stock index climbed Monday, those on Nasdaq were down 0.4% in the aftermath of the steepest weekly decline in global equities since June.

U.S. technology shares, which have posted stratospheric gains through the depths of the pandemic, showed signs of buckling at the end of the week amid reports that huge options bets were fanning their gains. The downturn embroiled SoftBank Group Corp., which slumped 7% after reports that the Japanese conglomerate made massive bets on tech-linked options trades.

Nasdaq Futures Resume Declines With Valuation Angst Lingering

“I don’t think this is a start of a downturn in asset prices,” said Robert Greil, chief strategist at Merck Finck Privatbankiers AG in Munich. “We’re only in the first phase of the economic recovery, which makes a major downturn unlikely. Naturally, setbacks are buying opportunities in such an environment.”

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Meanwhile, the pound fell to $1.3157, extending its drop to the longest since June as the prospects of a trade accord with the European Union looked increasingly remote. U.K. Prime Minister Boris Johnson said Monday he’s willing to walk away from talks rather than compromise on what he sees as the core principles of Brexit, and set an Oct. 15 deadline to reach an agreement.

Here are some key events coming up:

The ECB will probably hold rates on Thursday but indicate that downside risks have intensified, suggesting further easing is possible before year-end.U.S. CPI data is due Friday, with consumer prices expected to rise in August for a third straight month.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index gained 0.5% at 5:42 p.m. New York time.The Stoxx Europe 600 Index climbed 1.7%.The MSCI Asia Pacific Index declined 0.3%.The MSCI Emerging Market Index fell 0.5%.

Currencies

The Bloomberg Dollar Spot Index increased 0.3%.The euro slid 0.2% to $1.1816.The British pound dropped 0.9% to $1.3157.The Japanese yen was little changed at 106.28 per dollar.

Bonds

The yield on 10-year Treasuries was unchanged at 0.72%.Germany’s 10-year yield added 1.1 basis points to -0.464%.Britain’s 10-year yield dropped 1.4 basis points to 0.246%.Japan’s 10-year yield gained 0.5 basis points to 0.039%.

Commodities

West Texas Intermediate crude fell 1.7% to $39.08 a barrel.Gold weakened 0.2% to $1,930.26 an ounce.Brent crude dropped 1.6% to $41.99 a barrel.

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