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DG365FD46564GFH654FU898 The euro currency rebounded and gold futures headed lower after Italian President Giorgio Napolitano announced that Prime Minister Silvio Berlusconi will step down after the nation’s Parliament approves a new austerity bill. Berlusconi's resignation followed Parliament after he was unable to shore up an essential majority in Parliament, leading to calls for his removal from office. The euro spiked from near 1.378 toward 1.385 against the U.S. dollar following the news, while COMEX gold futures slid from an intra-day high of $1,804.40 to near $1,790 per ounce. U.S. equity markets rebounded as well, with the S&P 500 Index higher by 0.5% at 1,267.95 in afternoon trading. While financial markets showed a positive initial reaction to the news, Fil Zucchi of Minyanville.com warned that investors should “be careful what they wish for.” “If Berlusconi resigns, the consensus seems to be that a ‘technical government’ can step in, implement the reforms required by the European Union, and reverse the growing credit crunch affecting Italian bonds,” Zucchi noted .
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