In European Equity Markets stocks closed lower, as investors monitored signs of thawing tensions between the U.S. and North Korea and reacted to renewed political turmoil in Italy. Italian stocks closed 2.07 percent after initially opening the session higher. This after news of a dramatic setback for the country’s populist parties. Meanwhile, Germany’s DAX and France’s CAC were trading slightly lower at the close. Market holidays in the U.K. and U.S. made trading slow and illiquid on Monday.

In Currency Markets the euro gave up its early gains and turned negative on Monday after Italy’s president set the country on a path to fresh elections, raising concerns that such a route may deliver an even stronger mandate for the country’s anti-establishment parties. After climbing more than half a percent in early London trading to rise to the day’s highs of $1.17285, the single currency fell sharply to trade at the day’s lows at $1.1647, down 0.1 percent on the day. Elsewhere, the dollar was flat against the Japanese yen at 109.42 yen.

In Commodities Markets oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains show no sign of slowing. Brent crude futures stood at $75.22 a barrel, down $1.22 from the previous close. The contract touched a three-week low of $74.49 earlier in the session. U.S. crude futures were at $66.49, down $1.39, after hitting a six-week low of $65.80. The spread between the two contracts reached $9.38 a barrel, its widest since March 2015. Trading was light due to public holidays in the United States and United Kingdom.

In US Equity Markets trading was closed due to Memorial Day holiday.

In Bond Markets Canadian government bond prices were higher across the yield curve in sympathy with German Bunds. The two-year rose 6.5 Canadian cents to yield 1.963 percent and the 10-year climbed 57 Canadian cents to yield 2.347 percent. The Bank of Canada will probably hold interest rates steady this week as uncertain trade policy and indebted consumers necessitate caution, but firmer price and wage inflation will prompt two increases in the second half of 2018, a Reuters poll predicted.