The situation in Italy is still not calm and market jitters are extending as Mario Monti faces hurdles in forming his technical government.

The newly assigned Prime Minister and former European Commissioner Mario Monti continues with his critical meetings today is still faced with political resistance on his new technical cabinet and objections to new austerity measures.

Monti is clearly under renewed market pressures as the 10-year yield surge again above 7.0% the critical level that is seen unsustainable and which brought Berlusconi's government down last week.

Investors are nervously awaiting the developments from Italy as Mario Monti said that he will wrap the talks today on Tuesday and will likely unveil the new cabinet.