Italian Stocks Explode Higher After European Elections

It's going to be a quiet day in markets thanks to the Memorial Day holiday in the US.

But European markets are largely open, and they're currently digesting yesterday's European Parliamentary Elections.

There are two storylines that played out yesterday. One was the rise of the anti-EU right wing. In the UK and France, the big winners were the UKIP and National Front respectively. Both parties are extreme right, and are Euroskeptics. The right win also turned in strong showings in other European countries.

The other storyline - and this is the one the markets seem to be reacting to - is the vote for political stability in Italy, and to a lesser extent Greece.

In Italy, the party of sitting liberal Prime Minister Matteo Renzi scored a massive 40% of the vote, giving the government a mega mandate for reform.

As such, the Italian stock market is up 2.5%, leading a generally green day across the continent.