Good morning!

News what you need to know prior to today's market opening:

Berlusconi had finally bowed to pressure and would resign once new austerity measures are passed had helped markets in the U.S. and Asia higher. Berlusconi had been perceived as part of the problem in the political deadlock gripping Italy. .

Italy's ten-year yield jumped above the 7 percent rate widely considered to be unsustainable in the long-run. When Greece, Ireland and Portugal saw their ten-year borrowing rates rise above 7 percent, the markets concluded they had to be bailed out.

What happens in Italy is crucial to the eurozone's survival. With debts of around euro1.9 trillion ($2.6 trillion), Italy's debts are considered far too big for Europe to bail out.

Higher rates would make it more difficult and expensive for Italy to roll over its debts. The country has over euro300 billion ($412 billion) to raise in 2012 alone.

The worry appears to be that even without Berlusconi at the helm, Italy faces a period of political deadlock..

The euro also fell sharply, trading 1.1 percent lower at $1.3673..

Socialist Cabinet members yesterday issued their resignations, paving the way for the creation of a new government, which is only expected to last until February.

Former European Central Bank vice-president Lucas Papademos was the early favorite to become the interim prime minister, but it was unclear whether he remained in the running.

The political crisis erupted last week, when Premier George Papandreou said he would put the new European rescue package to a referendum. Other eurozone nations were horrified by the delay, markets around the world tanked and Greece's international creditors froze the payment of the next bailout.

Earlier in Asia, sentiment had been boosted by the Berlusconi pledge, with Japan's Nikkei 225 index closing 1.2 percent higher at 8,755.44. South Korea's Kospi added 0.2 percent to 1,907.53 and Hong Kong's Hang Seng jumped 1.7 percent to 20,014.43.

There was also some cheer from the news that China's stubbornly-high inflation fell in October as rapid rises in food costs eased. The decline was seen positively by investors as it gives Beijing more room to stimulate China's economy.

Oil prices tracked equities lower — benchmark crude was down 96 cents at $95.84 a barrel in electronic trading on the New York Mercantile Exchange.

Stand by today's recommendations and have a great trading session.