Global Stocks

European stock markets dropped from a 2016 high on Monday, with the recent rally in banks on pause as troubled lender Banca Monte dei Paschi di Siena SpA made a last-ditch effort to avoid a state bailout. Banks have been a major factor in the recent rally, rising on hopes for a resolution to the Italian banking crisis and tracking sharp gains in the U.S. financial services sector.

U.S. stocks advanced tepidly on Monday with investors somewhat reluctant to make big bets in a preholiday week while the main benchmarks were sitting near all-time highs set last week. Trading volumes were thinner than usual, with the New York Stock Exchange reporting volume at 60% of the 30-year average, according to FactSet. After a mild knee-jerk reaction to news of the assassination of the Russian ambassador to Turkey, markets resumed their climb to close modestly higher.

A strong outlook on the U.S. economy by U.S. Federal Reserve chair Janet Yellen and positive economic data from Germany lifted Asian shares Tuesday, even as traders reacted to the attacks in Berlin and Turkey. Speaking at the University of Baltimore's midyear commencement ceremony Monday, Yellen said recent improvements in the economy have created one of the strongest job markets in years for graduates.