There were no major economic releases today. A low-impact report on business inventories was released this morning, showing a stronger-than-expected 0.9% increase in June, led by a strong gain in durable goods stocks. Inventories had been expected to rise 0.5%.

High-impact data, such as tomorrow's industrial production numbers and Wednesday's Consumer Price Index may not move the markets significantly unless they are major surprises.

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The U.K. markets got off to a sleepy start this week, but speculation about mergers in the bank and telecommunication sectors pushed key indices higher. Drug stocks were also moving higher. The London FTSE 100 closed up 35.40 to 6419.90.

The CAC 40 in Paris ended up 56.36 to 6609.36 and the Xetra Dax in Frankfurt was lower 17.46 7305.52.

The euro traded at $0.9051.

Asian markets were flat to lower overnight.

Tokyo investors managed to take the Bank of Japan's first interest rate hike in 10 years, announced Friday after the close, pretty much in stride. Japanese shares drifted a few notches higher, a quiet response to the 25 basis-point interest rate increase. The market lacked direction, while trading volume dwindled as investors rushed off to their vacations.

The Nikkei 225 index rose 36.41 to close at 16,153.91,

With short-term interest rates still very low, around 0.28%, an immediate reaction to the change is not expected.

The dollar traded at 109.45 yen

Also amid directionless trading, Hong Kong's Hang Seng index dropped 216.36 to close at 16,998.06. Some concerns over Pacific Century Cyberworks hit shares, which fell HK$0.70, or 4.4%, to 15.30 ($1.96). Sentiment has turned sour since investors got hold of news that chairman Richard Li sold about 240 million shares last Wednesday. This is on top of recent volatility as Cable & Wireless HKT investors struggle to chose between the cash or stock option this week before the two firms officially merge.