(For a live blog on European stocks, type LIVE/ in an Eikon news window)
LONDON, May 28 (Reuters) - Italian banks led a sharp European stocks rebound on Monday after the failure of anti-establishment parties to form a government lifted the euro zone's peripheral markets with the prospect of fresh elections.
The Five-Star and League parties abandoned efforts to form a government after Italy's President vetoed their choice of a eurosceptic economy minister, sending Italian bond yields lower and Italy's main FTSE MIB stock index sharply higher, while the euro also made gains. FTSE MIB .FTMIB had climbed 1.4 percent by 0720 GMT as financials and utilities stocks surged.
Utility Enel ENEI.MI , which had also been hurt by investors pricing in some of the coalition's policies on renewable energy, traded up 1.9 percent.
Banks fuelled a 0.2 percent gain in Europe's STOXX 600 .STOXX , while Germany's DAX .GDAXI rose 0.5 percent. Britain's FTSE 100 .FTSE was closed for a holiday and with U.S. markets also closed, trading volumes were thinner.
Spain's IBEX .IBEX also rose 0.7 percent as the rally spread to other southern European markets. Spanish stocks had fallen sharply on Friday on concerns Prime Minister Rajoy would face a no confidence vote.
Danish biotech firm Genmab GEN.CO fell 24 percent after it ended combination trials of its multiple myeloma drug Darzalex with Tecentriq, citing "no observed benefit" and an increase in deaths after the combination treatment.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.