The anxiety from Italy did not last long. The deep current of the international cycle, which is improving, has regained the upper hand, with US data (consumer confidence and house prices) confirming the favorable winds of the US recovery. Even if the Italian crisis can still lead to tensions, the period of waiting and settlement of the results will last a few weeks and for now the markets can turn their attention to other variables.
Bernanke reassured investors of continued monetary support, while acknowledging that there are also risks: but the benefits, he reasonably noted, outweigh any potential drawbacks. However, gold, which moves in the opposite direction to these reassurances (more money creation means more recourse to the metal-shelter), recovered, recovering 1600, to 1610 $/ounce.
The Tokyo Stock Exchange is down, still at a yen which has strengthened. Both the Nikkei and the yen have to digest the long rides of the past months. The euro was stable at 1,306 and Wti oil at 92,75.
