UK stock markets opened with decent gains on Monday morning after the weekend saw Italy form a new government, removing some of the political uncertainty that has dampened sentiment over the last few months.The formation brings together Prime Minister-designate Enrico Letta's Democratic Party and the People of Freedom party, led by former PM Silvio Berlusconi who will take up the Deputy PM role. The coalition comes after Giorgio Napolitano was re-elected as President last week. "After two months of political infighting and bickering it would appear that Italy now has the makings of a new government, and in so doing, avoiding the need for further elections, after newly re-elected Italian President Giorgio Napolitano threatened to resign if no decision was reached," said Senior Market Analyst Michael Hewson from CMC Markets."This news, while likely giving a small boost to equity markets and the euro this morning, doesn't make Italy's economic problems any easier to resolve and the new government's ability to move forward with an economic strategy will be a key test, and something that the markets could well put to the test."FTSE 100: Aberdeen surges after half-year reportAberdeen Asset Management was a high riser after saying that assets under management increased 13% in the last six months as risk appetite continues to improve.UK lender Lloyds gained after announcing plans to dispose of its loss-making Spanish retail and private banking operations in an effort to continue its strategy of 'rationalising' its overseas presence and ensuring best value for shareholders.Financial services group Legal & General edged higher after signing a deal to reinsure €136m of New Ireland Assurance's existing and future annuity business, its first annuity deal outside the UK.Vedanta Resources was in demand despite announcing that its subsidiary Sesa Goa swung into the red in the year to March 31st after its operations in India were hit by a ban on iron-ore mining. Sector peer BHP Billiton gained after saying that it is to sell its Pinto Valley operation and the associated San Manuel Arizona Railroad Company to Capstone Mining Corp for $650m.FTSE 250: Balfour Beatty and Greggs drop on gloomy guidanceBalfour Beatty, the infrastructure firm, was a heavy faller after saying that its UK construction business is expected to deliver "significantly lower profits" from operations in 2013 than its previous expectations.High Street bakery chain Greggs was also declining sharply after saying that profits for the full year would be slightly below the lower end of market forecasts.Heading the other way was pest control and hygiene group Rentokil Initial despite reporting mixed conditions during the first quarter. Profits fell but revenues edged higher. FTSE 100 - RisersAberdeen Asset Management (ADN) 452.40p +8.46%Eurasian Natural Resources Corp. (ENRC) 277.00p +2.86%Schroders (SDR) 2,318.00p +1.36%Hammerson (HMSO) 524.50p +1.25%CRH (CRH) 1,393.00p +1.24%London Stock Exchange Group (LSE) 1,325.00p +1.15%Antofagasta (ANTO) 926.50p +1.15%Fresnillo (FRES) 1,166.00p +1.13%Whitbread (WTB) 2,601.00p +0.89%Resolution Ltd. (RSL) 263.70p +0.84%FTSE 100 - FallersReed Elsevier (REL) 753.50p -2.84%RSA Insurance Group (RSA) 111.60p -1.24%Polymetal International (POLY) 748.00p -1.19%Sainsbury (J) (SBRY) 378.40p -1.15%WPP (WPP) 1,054.00p -1.03%Sage Group (SGE) 338.10p -0.79%BAE Systems (BA.) 376.10p -0.74%Vodafone Group (VOD) 195.80p -0.71%Croda International (CRDA) 2,508.00p -0.67%Kingfisher (KGF) 313.90p -0.63%FTSE 250 - RisersRentokil Initial (RTO) 102.10p +5.64%Bellway (BWY) 1,401.00p +4.79%Persimmon (PSN) 1,129.00p +4.54%Taylor Wimpey (TW.) 98.90p +3.13%UBM (UBM) 734.00p +2.80%Berkeley Group Holdings (The) (BKG) 2,169.00p +2.60%Invensys (ISYS) 367.20p +2.46%SDL (SDL) 378.60p +2.35%Barr (A.G.) (BAG) 550.00p +2.33%Ted Baker (TED) 1,350.00p +2.27%FTSE 250 - FallersBalfour Beatty (BBY) 219.80p -10.80%Greggs (GRG) 428.90p -7.26%Petropavlovsk (POG) 147.50p -4.41%Supergroup (SGP) 714.00p -3.06%Carillion (CLLN) 281.40p -2.90%African Barrick Gold (ABG) 184.80p -2.74%NMC Health (NMC) 329.90p -2.40%Computacenter (CCC) 453.10p -1.50%Keller Group (KLR) 834.50p -1.42%Informa (INF) 484.00p -1.22%BC