As politicians in Greece and Italy struggled to figure out who will be running two of Europe's most indebted countries, European stocks, U.S. stock futures, oil, copper, and the U.S. dollar rose.
Britain's FTSE 100 gained 1.4 per cent, France's CAC 40 rose 1.6 per cent, and Germany's DAX climbed 1.7 per cent. Dow futures were up 51 points, or 0.4 per cent, at 12,058, while S&P 500 futures edged 5 points, or 0.4 per cent, higher to 1,262.50.
Ten-year Italian bonds were yielding more than 6.7 per cent, closing in on the 7 per cent level that prompted Ireland and Portugal to seek bailouts, as politicians in Rome readied for a crucial vote on public finances that may topple Prime Minister Silvio Berlusconi's government. The unsustainable yields could force the European Union's third-largest economy to seek a bailout.
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Meanwhile, in Greece, attempts were still under way to form a consensus government to keep the country in the euro zone. Socialist Prime Minister George Papandreou, who agreed to step down Sunday, and conservative party head Antonis Samaras have been wrangling over who will lead an interim government that aims to secure a new $179-billion (U.S.) European rescue package. European leaders stepped up the pressure for a quick resolution by holding back the loan, without which Greece will go bankrupt.
The euro slipped to $1.3764.
The U.S. dollar also edged higher against the loonie, which traded at 98.39 U.S. cents.
Gold was steady near $1,790 an ounce.
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Copper gained 0.6 per cent, rising to $7,870 a tonne.
U.S. crude oil rose 0.6 per cent to $96.13 a barrel.