World stocks rose and bond yields fell as investors welcomed an apparent end to a political crisis in Italy, although prospects of a full-blown trade war put a dampener on gains.
Italian stocks rallied 2.6 percent , the standout performers in Europe. The political crisis knocked more than 9 percent off the Italian benchmark in May, its worst months since June 2016.
Events in Italy pushed peripheral euro zone bond yields down for a third straight day, as investors also kept an eye on a second southern European state, Spain, where Prime Minister Mariano Rajoy has been forced out of office by a no-confidence vote.
Of potentially greater concerns to investors was the renewed prospect of a global trade war after the United States imposed steel and aluminum tariffs on Canada, Mexico and the European Union.