Wall Street’s three major indexes rose on Tuesday and other international equities also gained in polite fashion. European stocks continue to inch their way up on the backbone of confidence building mechanisms from the E.U. and ECB regarding Greece. Whether or not the confidence building mechanisms are going to work long-term is another issue. However for the time being the broad markets are working. While caution certainly rules the airwaves, the sun continues to come up in the mornings shining.

Gold as of this writing is near 1714.00. Crude Oil continues to consolidate near its lows and has not been able to muster a climb. As of this morning WTI is around 86.00 USD per barrel. The EUR has shown signs of life and has put in some gains the past day.

Yesterday’s German ZEW Economic Sentiment reading was positive with an outcome of 6.9, rebounding nicely from last month’s mark of minus -15.7. Today Industrial Production numbers will come from the continent and meetings will take place between European Finance Ministers in Brussels. News from Italy continues to be a stick that pokes at investors regarding the recent re-emergence of Silvio Berlusconi. Bond yields from Italy and Spain must be watched. Signs point towards a winter election in Italy. Quotes from Berlusconi such as yesterday’s, in which he said Mario Monti was too German and added that the yield difference between German and Italian bonds is a scam, will not help matters.

From the States, the Fed will enter the picture with their last FOMC Statement for 2012. Nothing particular new is expected from the Fed today. Digital Markets Advisor expects to read that they remain concerned about growth but see signs of hope from improving employment numbers. It should also be expected that they will maintain their current monetary policy without any real surprises. After all, it is now the holiday season and Santa Claus must continue to give out gifts even if there is no real money to pay for them.

Lets not forget to think about the ‘fiscal cliff’ either people. The clock continues to tick and a budget consensus will be needed. As has been predicted here, politicians seem to be laying the groundwork for a limited deal in which they follow the time honored practice of kicking the core issues down the block to be dealt with later. They will announce with great reverence that they have done the best they can do for the moment and that all concerns will continue to be dealt with. It appears that Republicans have given in to the call for more taxes and they are now pressing the Democrats for expenditure cuts. If for some reason the Washington politicians cannot make their own bed in the next couple of weeks it would even be a surprise to Digital Markets Advisor. Not to say that we expect the bed to be ready to be slept in, merely that the blanket and sheet will cover all of the nonsense the children want to play with but hide from the parents. The parents in this case are the public and investors, and it will be interesting in this day and age of not taking responsibility for ones own actions if any discipline will be actually given out. End of the day it is all about accountability, the public and investors are likely not counting on it actually taking place and will rest in the comfort that their children have learned to lie with a straight face.