European markets gain on hopes of win for Reformers in Italy

European shares and the euro rose on Monday, buoyed by hopes that Italy's general election would be won by parties advocating reform and fiscal austerity. According to dpa, the eurozone's blue chip Eurostoxx index was up 1.7 per cent at 2,675 points by late morning. The euro edged up 0.5 per cent to 1.3258 dollars. Italian 10-year bond yields slipped 6 basis points to 4.39 per cent. Despite the gains, there are still concerns that the 17-member eurozone could plunge back into crisis if the pro-reform parties fail to win Italy's election. Shares in Milan also rose, increasing 1.3 per cent. Stocks in Frankfurt rose 2 per cent. Stock markets were also underpinned by expectations that Japan plans to appoint a new central bank governor, who will follow through with Prime Minister Shinzo Abe's push for an aggressive monetary easing to spur growth.