In European Equity Markets stocks inched lower in quiet trading on Monday with Italian stocks left behind as talk over a possible early election weighed, hitting banks. Activity was reduced as holidays in major markets such Britain and the United States kept investors away. The euro zone equity index fell 0.16 percent, while Italian blue chips fell 2 percent to their lowest level in more than three weeks, while Germany’s DAX added 0.2 percent. Lanxess rose 6.7 percent after news that billionaire Warren Buffett had acquired a 3 percent stake in the German chemicals maker. Another top mover was Danish jewellery maker Pandora which fell 4.3 percent after weaker-than-expected results at U.S. peers Tiffany’s and Signet Jewelers last week.

In Currency Markets Britain’s pound was the main mover among major currencies on Monday, recovering some ground after weekend polls showed Prime Minister Theresa May is set to win next week’s elections even if the scale of victory is in question. The pound rose 0.2 to 0.3 percent in thin trade in Europe, trading at $1.2837 and 87.07 pence per euro respectively. The dollar was flat, trading at $1.1185 per euro and 111.35 yen after steadying on a better batch of U.S. economic data on Friday that solidified expectations of a rise in official interest rates next month. The dollar index was lower at 97.366 but above last week’s nadir of 96.797, its lowest since Nov. 9.

In Commodities Markets  oil prices rose slightly on Monday, paring steep losses from last week, but the market remained cautious as increases in U.S. drilling activity have undercut an OPEC-led push to tighten supply.  Brent crude futures were up 37 cents at $52.52 per barrel. Brent fell nearly 3 percent the previous week. U.S. West Texas Intermediate crude futures were 42 cents higher at $50.22 per barrel. Spot gold was at $1,266.30 an ounce, little changed from $1,266.66 late on Friday. In other precious metals, silver was up 0.2 percent at $17.38 an ounce, having touched a one-month high of $17.41. Platinum was 0.3 percent lower at $953 while palladium was up 1.1 percent at $799.

In U.S., Equity Markets are closed for the Memorial Day holiday.

In Bond Markets  Italian government bond yields shot up on Monday as investors fretted over the possibility of parliamentary elections being held as early as this autumn after comments from former Prime Minister Matteo Renzi. Italian government bond yields jumped 10 bps at one stage, and though they fell back another 4 bps as the session wore on, it was still the outlier as most other euro zone bond yields were lower on the day by afternoon trading.  The yield on Germany’s 10-year government bond, flat up to this point, then fell 2.5 basis points to a one-month low of 0.31 percent. Other high-rated euro zone bond yields were also lower 1-2 bps on the day.