Markets expected to rebound as Berlusconi quits

THE resignation of Italian Prime Minister Silvio Berlusconi will prove a boost to investors today, with local stocks expected to climb on the back of greater certainty in European politics. The Australian share market is likely to kick-start the week in a positive manner after progress was made towards resolution of the Eurozone debt crisis. Investors around the world are seeing Mr Berlusconi's resignation as an important step in Italy's turnaround, experts said. CommSec chief economist Craig James said the local market would rise given European and US markets rose on Friday and there were also gains on commodity markets. "One day it's exuberance, the next day it's pessimism, but at the moment it's exuberance or confidence which is holding," he said. Mr James said investors would remain cautiously optimistic because there was still a long way to go in resolving the Eurozone debt crisis. New Greek Prime Minister Lucas Papademos also took office over the weekend.