In European Equity Markets the pan-European STOXX 600 closed higher by 1.04 percent, with the majority of sectors posting strong gains. The U.K.’s FTSE 100 closed up 0.65 percent and France’s CAC 40 rose 0.6 percent, while Germany’s DAX closed 1.49 percent higher. During Monday’s session, the FTSE MIB fell more than 1 percent and entered correction levels, off some 10 percent from the highs it saw on January 23, 2018. Europe’s retail stocks performed well on Monday, closing up 1.18 percent amid takeover news. Tesco completed a £4 billion ($5.51 billion) takeover of Booker, creating a new powerhouse in Britain’s food market. Tesco’s shares gained 1 percent following the announcement.

In Currency Markets the euro edged up from the day’s lows but remained weaker on Monday as an inconclusive election in Italy pointed to prolonged political uncertainty after right-wing and eurosceptic parties did better than expected. The euro rose to a two-week high above $1.2360 in Asian trading after Germany’s Social Democrats voted to re-enter a grand coalition with Chancellor Angela Merkel’s conservatives, ending a period of political uncertainty in Europe’s biggest economy. But it quickly retreated by 0.8 percent toward the day’s low at $1.2269 as results from Italy pointed to a messier outcome than expected, a strong showing for anti-establishment parties and no group able to form a stable government.

In Commodities Markets oil prices edged lower toward $64 per barrel on Monday on predictions of a major spike in U.S. oil output in the next five years. International benchmark Brent crude was down 21 cents, having shelved morning gains of around 0.6 percent, at $64.16 a barrel. The contract was well below this year’s highs of over $71 per barrel that it hit in January. U.S. West Texas Intermediate (WTI) crude was virtually flat at $61.23 per barrel. The number of oil rigs drilling for new production in the United States rose to 800 for the first time since April 2015 in early March, pointing to more increases in output to come.

In US Equity Markets indices swung higher on Monday, coming off a turbulent period following concerns that President Donald Trump’s threat to impose hefty tariffs of steel and aluminum would spark a global trade war. The Dow was up 173 points mid-day trading on Monday, after falling 140 points at open, while all the 11 S&P sectors were higher. Shares of Clearside Biomedical jumped 43 percent after the drug developer’s eye drug met the main goal in a late-stage study, while Dermira fell 63 percent after the company abandoned its acne drug. Europe’s second-biggest insurer XL Group Ltd rose 30 percent after being acquired by France’s AXA for $15.3 billion.

In Bond Markets investors sold heavily Italian government bonds on Monday and rushed to buy high-grade equivalents such as Bunds, after a gain in support for anti-establishment parties in the country’s election. Italy faces a prolonged period of political instability after voters delivered a hung parliament in Sunday’s election, spurning traditional parties and flocking to anti-establishment and far-right groups in record numbers. The yield on 10-year Italian government bonds jumped 10 basis points at the open to 2.14 percent, before settling at 2.09 percent – still up nearly 6 bps on the day. German 10-year government bond yields, meanwhile, touched a one-month low of 0.596 percent.