After two weeks of declines, markets started this week with a strong rally. The S&P 500 rose 2.9 percent while the STOXX Europe 600 rose 3.8 percent. Italian 10-year yields fell 3 basis points to 7.23 percent.
While investors unwound some of their bearishness on Monday, OECD economic projections are still catching up with the deteriorating outlook. In the OECD's latest economic outlook, member nations are collectively projected to grow 1.9 percent this year and 1.6 percent next year, down from 2.3 percent and 2.8 percent predicted in May.
The OECD says that the euro area is already in a "mild" recession, and its debt crisis represents the "key risk" to the world economy.
Data from the US on Monday suggest that its economy is doing better, with new home sales rising 1.3 percent in October.
However, the US has its own debt problem. On Monday, Fitch Ratings maintained its AAA credit rating for the US but lowered the outlook to negative, citing the recent failure by a congressional committee to agree on a deficit reduction plan.
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