(Bloomberg) -- On the bright side, everything that was down last week in Europe is up today. The catch is that many of these recoveries are starting to resemble a dead-cat bounce.

The Stoxx Europe 600’s strong open on Monday began to falter as Italy’s relief rally faded. The country’s populist leaders hinted at a softer stance on the budget and Moody’s Investors Service at least didn’t downgrade its debt to junk, but now the FTSE MIB is up just 0.3 percent, after surging as much as 2 percent earlier.

The auto sector, whose valuation plunged to a six-year low last week, also gave up some of its early Monday gains. The biggest winner remains Fiat Chrysler Automobiles NV, which is up 5 percent after agreeing to sell its high-tech car-parts unit for about $7 billion.

The long-suffering basic resources sector is also trading higher, though not as much as it was this morning. Of course, it’s all about China, which promised measures to support the economy as the trade war with the U.S. fueled concerns that demand for metals will take a hit.

This isn’t the first time in recent sessions that a strong open in Europe has faded as the day progresses, a sign nerves are still a bit fragile, especially if you consider overnight rallies of 2.3 percent in Hong Kong and 4.1 percent in Shanghai. But at least futures are still pointing to a U.S. open in the green.

“The showdown between Rome and Brussels continues, and just because the FTSEMIB has bounced back this morning, doesn’t mean that long-term confidence has been recovered,” said David Madden, market analyst at CMC Markets U.K.

To contact the reporter on this story: Justina Lee in London at jlee1489@bloomberg.net

To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, John Viljoen, Celeste Perri

©2018 Bloomberg L.P.