The euro rose against major currencies, responding thus to the completion of a two-month political crisis in Italy. On Saturday, Enrico Letta officially took over as prime minister of Italy. On Sunday, Italy's new government, which was formed from the representatives of the Democratic Party, the "People of Freedom" and "The Civil choice", has taken the oath. Note that a slight pressure on the single currency was weak data on the index of sentiment in the business environment and the economy of the region, which were worse than expected. However, the decline in the euro after the data was limited to the publication of information on the last auction of government bonds in Italy, the results of which are much better than previous similar.

Add that little impact on the dynamics of trade affected, and U.S. data, which showed that the number of pending home sales rose in March by 1.5% to 105.7, what happened after the fall of 1% (to 104.1) in February. We add that, according to the average forecast of economists, this indicator would grow by 1.1%. In addition, the data showed that the annualized amount of outstanding home sales rose by 7.0% compared with March of last year, registering with the 23rd consecutive monthly gain.

In addition, another report showed that personal spending, which measure the amount of purchases, from cars and clothing to health care and heating, rose last month by 0.2%, which was followed, after rising 0.7% in February. Economists note that the slowdown in spending have fueled drop in gasoline prices. Note that consumer spending accounts for about two-thirds of economic activity in the United States, and Americans tend to spend more when incomes rise, giving a potential boost to growth. Meanwhile, it was reported that incomes rose by only 0.2%, possibly reflecting weak job growth.

The Canadian dollar rose to a two-week high against the dollar, helped by a rise in oil prices, which is the country's largest export, as well as speculation that the U.S. will support the incentive program, and the European Central Bank will cut interest rates. Note also that contributes to the strengthening of the fact that tomorrow will be published data on the growth of the gross domestic product of Canada in February. It is predicted that the economy will expand by 0.2%, which corresponds to the January increase. Experts also point out that the growth of currency help the submitted data on U.S. GDP, which is the largest trading partner of Canada. Recall that GDP in the last quarter grew by 2.5 per cent per annum, compared with forecasts of 3 percent.

The pound strengthened to a 10-week high against the dollar as a report showed that house prices in the UK increased this month, boosting optimism about the fact that the recovery is gaining momentum. Also the growth of currency helps a government report that showed that the UK economy has avoided a recession in the last quarter, dropping speculation that the Bank of England will raise incentives. Note that the next meeting of the Bank of England will take place on May 8-9. Economists say that after the split policy this month to agree on whether to increase the size of the program to purchase assets, at the next meeting of the data differences may be reduced.

European stocks rose, pushing the Stoxx Europe 600 Index toward its longest streak of monthly gains since 1997, as Italy formed a new government and as U.S. consumer spending unexpectedly increased in March.

The Stoxx 600 advanced 0.5 percent to 297.39, its highest level since April 2. The benchmark gauge has climbed 1.2 percent in April, its 11th month of gains, as investors bet the region's central bank will cut rates and as companies reported better- than-expected results.

"What Europe really needs is growth, and anything that helps that growth narrative is a good thing," Adrian Bignell, a fund manager at Invesco U.K. Ltd., said in an interview with Mark Barton and Anna Edwards on Bloomberg Television. "The jigsaw is slowly coming together in Europe. Nothing is particularly beautiful, but somehow we seem to muddle through. The Italian government being formed this weekend is a good case in point for one more piece coming into the jigsaw."

National benchmark indexes advanced in 15 of the 18 western European markets.

FTSE 100 6,458.02 +31.60 +0.49% CAC 40 3,868.68 +58.63 +1.54% DAX 7,873.5 +58.74 +0.75%

In Italy, Enrico Letta was sworn in as prime minister yesterday, ending political uncertainty after February's inconclusive elections. Letta formed an alliance with Silvio Berlusconi, who has pledged to undo some parts of previous premier Mario Monti's budget-cutting measures.

Aberdeen rose 8 percent to 450.5 pence, its highest price since January 2001, after Scotland's biggest fund manager reported first-half adjusted pretax profit of 222.8 million pounds ($345 million), surpassing the average analyst projection of 211 million pounds. The company raised its dividend to 6 pence a share.

Swedish Match advanced 6.7 percent to 221.90 kronor as the snuffmaker posted first-quarter net income of 740 million kronor ($113 million), exceeding the 677 million-kronor estimate of analysts.

Mediaset SpA, owned by Berlusconi, was among the biggest gainers in Italy today, rising 4.7 percent to 1.97 euros. Intesa Sanpaolo SpA added 2.7 percent to 1.39 euros. UniCredit SpA, Italy's biggest lender, gained 2.5 percent to 4.02 euros.

Ageas climbed 4.8 percent to 27.75 euros. The majority owner of Belgium's biggest life insurer said it will pay shareholders 1 euro a share as it will receive 1.04 billion euros ($1.36 billion) from the sale of Royal Park Investments' asset portfolio and 144 million euros from the sale of a call option on BNP Paribas SA's shares.

Pohjola Bank Plc rose 5.3 percent to 13.34 euros, the highest price since at least 1992, as the Finnish lender said it expects higher consolidated pretax profit in 2013 compared with last year. First-quarter net income rose to 100 million euros, from 80 million euros a year earlier.

Fiat SpA (F) declined 1.2 percent to 4.64 euros after the Italian automaker said profit fell 23 percent to 618 million euros in the first quarter from a year earlier. Analysts had projected a drop to 691 million euros.

The price of oil rose today, rising above $ 103 a barrel, which was due to shaky growth prospects among the largest consumers of oil in the world (U.S., Europe and China). Note that last week the oil recovered from nine-month lows expectations that a stronger global economic activity will increase the cost of fuel, which lured some investors back into the market. However, disappointing data limited the recovery. The U.S. Commerce Department reported Friday that the world's largest economy grew at an annualized rate of 2.5 percent in the first quarter, below expectations of 3 percent.

Meanwhile, the data that were presented today by the European Commission showed that economic confidence in the euro zone fell in April, while continuing to decline, which was celebrated last month. Note that the index of sentiment in the economy fell by 1.5 percentage points to 88.6, which was worse than economists forecast (89.4). In terms of performance the maximum decline occurred in Germany and France. Improvement was observed in Spain and the Netherlands. The pressure on the mood in the industry has a negative assessment of the prospects for production. Weakening exports and weak orders are also reflected.

We add that this week, traders will focus on the Chinese data, which may indicate that the PMI manufacturing index fell slightly in April, but remained above the 50 level that indicates expansion.

Also in focus will be the European Central Bank, which is likely to cut interest rates. However, experts believe that the move has done little to pull the eurozone out of recession.

The cost of the June futures on U.S. light crude oil WTI (Light Sweet Crude Oil) rose to 94.04 dollars per barrel, the lowest intraday level since Dec. 19.

June futures price for North Sea Brent crude oil mixture rose $ 0.78 to $ 103.52 a barrel on the London exchange ICE Futures Europe.

Gold prices rose slightly today, helped by the weakening of the dollar on prospects for further easing of monetary policy in the United States and Europe. In addition, it was reported that the amount of physical buying in China and Japan has decreased due to the holidays. Economists say that the slow growth in the United States have raised expectations that the Fed will maintain its volume of bond purchases at $ 85 billion per month. At the time, many predicted that the European Central Bank will announce an interest rate cut on Thursday. Note that the adaptive policies support the price of gold as money printing promotes the growth of inflation.

Add that to the dynamics of trading almost no impact on the U.S. data, which showed that consumer spending in the U.S. rose slightly in March, while continuing to increase, which was observed in the previous month, indicating at the same time about a steady, albeit slow economic growth. According to the report, personal expenses, which measure the amount of purchases, from cars and clothing to health care and heating, rose last month by 0.2%, which was followed, after rising 0.7% in February. Economists note that the slowdown in spending have fueled drop in gasoline prices. Meanwhile, it was reported that incomes rose by only 0.2%, possibly reflecting weak job growth.

Add that to the largest reserves of gold exchange-traded fund SPDR Gold Trust declined on Friday to 7.2 tons, resulting in a general decline in the month amounted to 138.2 tons.

The cost of the June gold futures on COMEX today rose to 1472.40 dollars an ounce.

EUR/USD $1.2850, $1.2900, $1.3000, $1.3050, $1.3100

USD/JPY Y96.50, Y97.50, Y98.00, Y98.30, Y98.80, Y100.00

EUR/GBP stg0.8600, stg0.8640

AUD/USD $1.0200, $1.0260, $1.0280, $1.0285/95, $1.0300, $1.0365, $1.0450

AUD/JPY Y102.00

NZD/USD $0.8350

USD/CAD C$1.0340

U.S. stock futures climbed as investors awaited a report that may show more Americans signed contracts to purchase homes in March.

Global Stocks:

Hang Seng 22,580.77 +33.06 +0.15%

FTSE 6,436.95 +10.53 +0.16%

CAC 3,848.87 +38.82 +1.02%

DAX 7,844.36 +29.60 +0.38%

Crude oil $93.34 +0.37%

Gold $1469.00 +1.06%

EUR/USD

Offers $1.3170/80, $1.3145/50, $1.3115/30

Bids $1.3030/20, $1.2980, $1.2960/50

GBP/USD

Offers $1.5600/10, $1.5575/85, $1.5550

Bids $1.5510, $1.5500/490, $1.5460/50, $1.5430/20, $1.5410/00

USD/JPY

Offers Y98.80, Y98.45/50, Y98.30, Y98.00

Bids Y97.40/35, Y97.30, Y97.20/00, Y96.80, Y96.50

AUD/USD

Offers $1.0475/80, $1.0450, $1.0420, $1.0395/00, $1.0380, $1.0355/60, $1.0345/50

Bids $1.0305/00, $1.0265/60, $1.0250, $1.0220/10

EUR/GBP

Offers stg0.8530/35, stg0.8500/05, stg0.8480/85, stg0.8440/50

Bids stg0.8360/50

EUR/JPY

Offers Y129.40/50, Y129.00, Y128.75/80, Y128.45/50

Major European Stock indexes are trading mixed on weaker economic data and as Italy formed a new government and optimism grew that central banks will decide to maintain economic stimulus in their meetings this week.

Economic confidence in the euro area decreased more than economists forecast in April, data showed. An index of executive and consumer sentiment dropped to 88.6 this month from a revised 90.1 in March. Economists had forecast a decline to 89.3.

Currently:

FTSE 6,423.38 -3.04 -0.05%

CAC 3,835.78 +25.73 +0.68%

EUR/USD $1.2850, $1.2900, $1.3000, $1.3050, $1.3100

USD/JPY Y96.50, Y97.50, Y98.00, Y98.30, Y98.80, Y100.00

EUR/GBP stg0.8600, stg0.8640

AUD/USD $1.0200, $1.0260, $1.0280, $1.0285/95, $1.0300, $1.0365, $1.0450

AUD/JPY Y102.00

NZD/USD $0.8350

USD/CAD C$1.0340

Asian stocks rose, with a regional benchmark index headed for the highest closing level in six weeks, amid optimism central banks will maintain loose monetary policies to boost economic growth.

Nikkei 225 13,884.13 -41.95 -0.30%

Hang Seng 22,547.96 +0.25 0.00%

S&P/ASX 200 5,125.8 +28.29 +0.56%

Shanghai Composite 2,177.91 -21.40 -0.97%

ZTE Corp. gained 3.6 percent in Hong Kong as China's second-biggest maker of mobile-phone equipment returned to profit in the first three months of this year.

Westpac Banking Corp. jumped 1.7 percent, leading Australian banks higher, as analysts forecast the country's second-largest lender will announce increased profit this week.

OCI Co. lost 2.1 percent, heading for its lowest closing level in more than five years, after clients canceled 1.46 trillion won ($1.3 billion) of polysilicon orders with the South Korean chemical manufacturer.

00:00 China Bank holiday

00:00 Japan Bank holiday

The Dollar Index fell before U.S. data today forecast to show consumer spending stagnated last month, boosting bets the Federal Reserve will renew its commitment to its bond-buying program at a meeting this week. U.S. consumer spending was probably unchanged in March from February when it increased 0.7 percent, according to the median forecast of economists surveyed by Bloomberg News. A separate report showed last week that U.S. gross domestic product expanded at a 2.5 percent annual rate, compared with the 3 percent gain estimated by economists and a 0.4 percent advance in the fourth quarter.

A government report showed on April 26 that the U.S. economy expanded less than forecast in the first quarter, helping Treasury yields extend their monthly decline toward the steepest since May.

The yen advanced against all major peers including the Australian and New Zealand dollars after a Chinese report showed slowing profit growth in industrial companies, supporting demand for refuge assets. Net income at industrial companies in China, the biggest trading partner for Australia and New Zealand, increased 5.3 percent in March from a year earlier, compared with a 17.2 percent pace in the first two months, the National Bureau of Statistics said on its website on April 27.

The euro extended its slide to a sixth day against the pound, the longest run of declines in a year. The median estimate of economists shows the European Central Bank will cut borrowing costs by 25 basis points from the current all-time low of 0.75 percent at its May 2 meeting.

Japanese markets are closed today and on May 3 for holidays, while those in China are shut for three days starting today.

EUR/USD: during the Asian session the pair traded in the range of $1.3030-60

GBP/USD: during the Asian session the pair rose to $1.5525

USD/JPY: during the Asian session the pair fell to Y97.35

There is little in the way of an overnight lead from Asia on Monday, with both China and Japan closed for national holidays. However, there is a full calendar on both sides of the Atlantic. German April flash HICP numbers are due for release, although there is no scheduled time for release. Flash HICP inflation data should ease any Germanic qualms about the inflationary risks of a rate cut, given recent falls in crude and commodity prices. Analysts are looking for a number of -0.1% m/m and 1.7% on year. Spanish flash HICP numbers are expected at 0700GMT, along with the release of the Spanish March retail sales numbers.At 0730GMT, the Swedish Riksbank monetary policy minutes from the April meet will cross the wires. The Italian Apr ISTAT business survey numbers will be released at 0800GMT. At 0830GMT, the German Export and Wholesale Association will release their export forecasts, in Berlin. Eurozone April consumer confidence and business climate indicator numbers are due at 0900GMT, ECB Executive Board member Joerg Asmussen is slated to speak at the International Institute of Finance meeting in Berlin.

00:00 China Bank holiday

00:00 Japan Bank holiday

09:00 Eurozone Business climate indicator April -0.86 -0.91

09:00 Eurozone Economic sentiment index April 90.0 89.4

09:00 Eurozone Industrial confidence April -12.5 -13.5

12:00 Germany CPI, m/m (Preliminary) April +0.5% -0.2%

12:00 Germany CPI, y/y (Preliminary) April +1.4% +1.4%

12:30 U.S. Personal Income, m/m March +1.1% +0.4%

12:30 U.S. Personal spending March +0.7% +0.2%

12:30 U.S. PCE price index ex food, energy, m/m March +0.1% +0.1%

12:30 U.S. PCE price index ex food, energy, Y/Y March +1.3% +1.2%

14:00 U.S. Pending Home Sales (MoM) March -0.4% +1.1%

22:45 New Zealand Building Permits, m/m March +1.9% +2.0%

23:01 United Kingdom Gfk Consumer Confidence April -26 -26

23:15 Japan Manufacturing PMI April 50.4

23:30 Japan Household spending Y/Y March +0.8% +1.7%

23:30 Japan Unemployment Rate March 4.3% 4.3%

23:50 Japan Industrial Production (MoM) (Preliminary) March +0.6% +0.4%

23:50 Japan Industrial Production (YoY) (Preliminary) March -10.5% -7.2%

23:50 Japan Retail sales, y/y March -2.3% +0.5%