Asian markets are sharply lower this morning, as uncertainty over the Italian election result could destabilise the Eurozone, and harm any recovery. The Nikkei is around 2% lower whilst 10 year bond yields are at their lowest level since 2003.

Europe is dominated by the Italian election with indications that there could be a hung parliament and the need for a re-vote. European equity futures are pointing to a sharply lower open down around 1.5% whilst the Euro is also lower at around 1.3050. Moody's cut their ratings for Barclays and Lloyds overnight.

US markets fell sharply last night posting the largets one day decline for this year ahead of Bernanke speaking before lawmakers later today. Look out for home sales and Case Shiller data later today. Futures are currently unchanged.

Philip Ball | Sales and Trading