By Max Bernhard 

Global stocks gained Monday after voters in European parliamentary elections showed broad but more fragmented support for pro-EU parties, while populist factions gained less ground than expected.

In Europe, the pan-continental Stoxx Europe 600 rose 0.5% in the opening minutes of trading. The euro was slightly higher against the dollar at $1.12 and German government bond yields, considered the benchmark in the region, were down slightly at negative 0.13%.

In Asia, markets were mixed, as President Trump talked trade with Prime Minister Shinzo Abe on his visit to Japan. The Shanghai Composite rose 1.4%, while the smaller-cap Shenzhen rose 2.5%. Hong Kong's Hang Seng traded 0.2% lower and Japan's Nikkei gained 0.3%.

Financial markets in the U.S. and U.K. were closed Monday for holidays.

Italy's FTSE MIB index traded 1.1% higher, driven by Fiat Chrysler shares, which were up nearly 20% after the Italian-American car maker unveiled a proposal to merge with France's Renault.

In the U.S., futures pointed to gains of 0.2% for the Dow Jones Industrial Average and Nasdaq-100 and 0.1% for the S&P 500.

In Sunday's European parliamentary elections, the traditional coalition of conservatives and social democrats lost its majority, but together with liberals and greens, pro-EU groups will still hold a clear -- though more fragmented -- majority.

Euroskeptic and antiestablishment groups and parties increased their weight in EU policy-making, but gained less than expected.

Commerzbank chief economist Joerg Kraemer said it would get even more difficult to find majorities in the EU to pass policy reforms and negotiate trade deals.

"This will burden trade talks with the U.S., which will probably end up imposing car tariffs," he said.

Euroskeptics made significant gains in Italy, where Deputy Prime Minister Matteo Salvini's League Party was set to increase its presence from five to 24 seats. The result could embolden Italy to intensify the budget conflict with the EU, said Mr. Kraemer.

Italian 10-year government bonds yielded 2.58% Monday, down slightly from Friday. The spread over similar German government bonds, often seen as a barometer of eurozone cohesiveness, remained elevated at 2.68 percentage points.

In the U.K., Nigel Farage's Brexit Party was projected to come in first with over 30% of the vote, according to partial results. The outcome could pressure the ruling Conservative Party as it chooses a new leader in the wake of Prime Minister Theresa May's planned exit. The pound was slightly higher against the dollar at $1.272.

The WSJ Dollar Index, which tracks the dollar against a basket of currencies, rose 0.02%. In commodity markets, oil prices traded largely flat. Brent crude fell 0.06% to $67.43 a barrel. Meanwhile, gold prices rose 0.04% to $1,285.39 an ounce. Bitcoin futures rose 9.5% to $8,905, their highest level in over a year.

Write to Max Bernhard at Max.Bernhard@dowjones.com

(END) Dow Jones Newswires

May 27, 2019 05:02 ET (09:02 GMT)

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