"That does appear to have knocked some of the stuffing out of the recent market rally, " said Michael Hewson, market analyst at CMC Markets.

NPR: Markets Edgy As US Payrolls Loom

But Michael Hewson, an analyst at CMC Markets, doubted whether Mr Berlusconi's speech, made after European stock markets had closed, would calm investors' nerves.

BBC: Silvio Berlusconi says Italy banks 'solid and solvent'

"Crude oil prices have struggled to react with conviction one way or the other, " said Michael Hewson, senior market analyst at CMC Markets in an email commentary.

NPR: Oil Falls As Uncertainty Hits Energy Markets

"If European policymakers were looking for a way to undermine the public trust that underpins the foundation of any banking system they could not have done a better job, " said Michael Hewson, senior market analyst at CMC Markets.

NPR: Cyprus Deposit Tax Rattles Markets

"A large part of this fall will undoubtedly be attributed to the fallout from Hurricane Sandy as well as uncertainty brought on by the political logjam that was the fiscal cliff negotiations, " said Michael Hewson, senior market analyst at CMC Markets.

NPR: Markets Steady Ahead Of Fed Statement