The Italian cabinet has approved late Sunday a range of austerity measures to try to tackle its debt crisis and prevent the collapse of the Euro. Prime Minister Mario Monti said the measures were necessary to “save Italy”, and announced he would give up his own salary as part of the effort.
Taxes on the assets of the wealthy individuals will go up, as will pension ages for the country’s population. There will be a major drive to tackle tax evasion.
Financial markets in Asia opened with early gains. Rise in commodity prices is encouraged by the weakening of the USD against the Euro.
The Euro opened in Asia at $1.3437 with a gap higher from the Friday close of $1.3394 on the back of PM Mario Monti’s cabinet approval. The US Dollar was mixed on Monday in Asia, with investors refraining from taking fresh positions ahead of the ECB meeting and EU summit this week.
Crude futures are trading higher in Asian trade Monday, helped by the risk-on sentiment.
Asian markets have opened the new week with a brief rally to $1755 in gold prices, as the Dollar weakened on early Euro positive sentiment.
