Good Morning Traders.

Equity markets recovered their poise on Friday, gains in Europe were  inspired by a stronger than forecast German IFO survey this mood continued into the US session, making up for the relatively short lived pull back we saw earlier on in the week. Real money interest in ‘buying the dip’ from earlier in the week was the primary flow in US markets.  

Today there is relatively little limited interest on the economic calender so all eyes will be focused on the Italian election results expected after 3pm Italian time. This should play out as Euro positive as long as we don't see a surprise when results are released. Prior to the election results we will be trading off the back of the surprise Moody’s downgrade to the UK’s credit rating, one notch to AA1 from AA after stocks closed on Friday. GBP lost a cent in the last half hour of NY trade to trade at its lowest since mid-July 2010. It is lower again at the re-open. 

With a lack of important news-flow this afternoon expect to see the US continue its move to the upside and make up for some lost ground last week. As a trader keep an eye on any news on the Fiscal Cliff and any information from voting members as these can prove to be strong market drivers around this time of the year.

Over all trading with more then likely remain choppy and relatively sidewards until we get confirmation from Italy.

Happy Trading

@lowKeyCapital