European shares moved markedly higher yesterday as the market continued to digest the Euro-zone downgrades.  Leaders yesterday included the Italian MIB, Dutch AEX, and German DAX, rising 1.40%, 1.28%, and 1.25% respectively.  Although the French bill auction was a success with lower borrowing costs, S&P came out after markets closed to downgrade the European Financial Stability Facility (EFSF) to AA+ citing concerns over further possible downgrades.  Head of S&P's Sovereign Ratings Moritz Kraemer also noted that he believes a Greek default is right around the corner based on lack of compromise in debt talks.  EURUSD is edging higher though, climbing back above 1.27 to 1.2733 as risk sentiment improves after positive news from Asia.  
Asian markets are off to the races today following the release of the Chinese GDP figures which came in slightly better than expected at 8.90% versus 8.80% expected.  Industrial production and retail sales figures also beat expectations pushing the Hang Seng higher 1.91%.  This renewed hope and optimism has been driving risk assets higher, especially Asian equities which are carrying over the strength from the European session.  The Australian ASX is stronger today, rising 1.52% as the possibility of further easing in China following the slowest growth in 10- quarters improves forecasts for commodities demand.  The Aussie-dollar has risen against 15 of 16 major currencies while the Yen has fallen on diminished risk-aversion.
U.S. Markets were closed yesterday and are slated to reopen later today.  Equity futures continue to improve off the back of stronger than expected Chinese data.  The dollar, which has been relatively strong over the last few sessions, is losing ground today as risk appetite improved driving commodities notably higher.  Copper has improved 1.39% and crude oil is back over $100 per barrel as the Saudis announced plans to target stability in the market.  Natural gas has been under serious pressure, reaching lows not seen since September 2009, as weaker than expected heating demand and an inventory glut continues to pressure prices.