S&P Downgrades Italy; Euro, S&P Futures Initially Plunge, Then See Strong Reversal (Chart)

S&P downgraded Italy's credit rating to A from A+, read the full report at Zero Hedge: "Italy Unsolicited Ratings Lowered To 'A/A-1' On Weaker Growth Prospects, Uncertain Policy Environment; Outlook Negative". Initially the euro and equity index futures plunged, but after a few hours they rallied back to positive territory. The Fed meets today and tomorrow (correction), so markets could be positioning for the FOMC statement. Or perhaps the action is related to Greece. Either way, nice reversal; we'll see if it lasts. The December E-mini S&P Future (ESZ11) is at 1,200.25, up 0.23%; the December Comex Gold Future (GCZ11) is at 1,791, up 0.73%; and the December Euro Future (ECZ11) is at 1.3675, up 0.12%. Check out the chart comparing the S&P, euro and gold tonight.

Courtesy of OptionsXpress

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