European equities followed Asian counterparts higher and US equity futures gained as traders started the week in a risk-taking mood, supported by signs that a US North Korea summit is back on track. The euro recovered with Italian shares after the country's president rejected a Eurosceptic minister of finance.
The Stoxx Europe 600 Index rose as most of the national gauges in the region rose, although trading was subdued thanks to a holiday in the UK and US S & P 500 futures jumped, as did South Korean stocks after President Donald Trump had confirmed that his June summit with Kim Jong Un was resumed. As a result of comments by a Saudi minister that oil supply is likely to rise in the second half of the year, oil losses increased.
Investors are focusing their attention this week on European inflation, Chinese manufacturing and US jobs on Friday, the last before the Federal Reserve policy-makers meeting in June. Italy's assets will come to the fore after populist leaders have failed in their attempt to form a government, causing more turmoil in the country, but potentially mitigating a threat to the euro area.
"We may now be available for prolonged periods of heightened uncertainty before new elections, provided we go there, but this is not history for today," said Ray Attrill, head of currency strategy at National Australia Bank Ltd. in Sydney, and pointed to the advance of the euro on Monday. "For now, it is a relief that Italy will not have a declared Eurosceptic Minister of Finance for the time being."
Elsewhere, the Indonesian rupiah climbed on speculation about another rate hike by the central bank, while the country's equities and government bonds also rebounded.
Terminal users can read more on Bloomberg's Markets Live blog
These are some of the key events to see this week:
- US Markets are closed Monday for Memorial Day. The British markets are closed for the spring break.
- EU foreign ministers will meet in Brussels on Monday to discuss developments related to North Korea, Yemen and the Iranian nuclear agreement.
- EU Trade Minister Cecilia Malmstrom and US Secretary of Commerce Wilbur Ross are scheduled to meet in Paris on Wednesday for an informal meeting of the World Trade Organization.
- US employment report for May is due Friday.
- On Saturday, US Secretary of Commerce Wilbur Ross travels to Beijing for further talks with Deputy Prime Minister Liu He on topics such as ZTE Corp. and trade.
These are the main movements in the markets:
- The Stoxx Europe 600 Index rose 0.22% in London time by 0.22%.
- Futures on the S & P 500 Index gained 0.4% to gain in a week.
- The MSCI Asia Pacific Index gained 0.1 percent, the largest increase in more than a week.
- The German DAX Index rose 0.7 percent, the largest increase in more than a week.
- The MSCI The Emerging Market Index rose 0.5 percent.
- The Bloomberg Dollar Spot Index fell 0.2 percent, the largest decline in more than two weeks.
- The euro climbed 0.4 percent to 1.17, the largest increase of more than two weeks
- The British pound rose 0.1 percent to $ 1.3324.
- The Japanese yen lost less than 0.05 percent to $ 109.45.
- The Turkish Lira jumped 1.6 percent to 4.6418 per dollar.
Bonds  Germany's ten-year yield rose three basis points to 0.44 percent.  Italy's ten-year yield dropped by eight basis points to 2.384 percent, the largest decline in more than 14 weeks.
- West Texas Intermediate crude fell 1.6 percent to $ 66.77 a barrel, the lowest level in nearly six weeks on its fifth consecutive fall.
- Gold fell 0.4 percent to $ 1,296.73 an ounce, the largest decline in nearly two weeks.
- Brent crude fell 1.2% to $ 75.53 a barrel, the lowest in nearly three weeks.
– With the support of Ruth Carson