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Italian stocks retreated Monday after Prime Minister Matteo Renzi's resignation announcement following defeat of a constitutional referendum, but questions remain about political uncertainty and the possibility of another eurozone crisis.
The Dow Jones Industrial Average finished at a record on Monday as solid economic data offset concerns about Europe's stability in the wake of a rejection of Italy's vote on Sunday to reform existing constitutional rules. The broader stock market rose after a survey showed that the services side of the economy grew at its fastest pace in November in a year. The Institute of Supply Management nonmanufacturing index climbed to 57.2 last month. Any reading over 50 indicates economic expansion.
Asian stocks posted their biggest rise in two weeks on Tuesday and the euro steadied as investors judged the selloff after Italy's referendum was overdone, with robust U.S. economic data also helping sentiment.
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