There’s not much news or data this morning, but in the last hour, Italy has gone from being down about 0.6% to up about 0.6%, a not-so-minor move.
So what’s going on?
Could be this Reuters report about big emerging economies being willing to give more to the IMF.
Major emerging powers stood ready on Friday to pledge money to bolster the International Monetary Fund’s crisis-fighting war chest, though Brazil was holding out for promises that their voting power at the global lender would increase. Russia said that G20 advanced and emerging countries were ready at a meeting on Friday to commit enough new funds to fulfil IMF chief Christine Lagarde’s request for at least $400 billion to draw a line under the euro-zone crisis.
Russia itself, he said, would offer $10 billion. “Trust me that the G20 will announce the final amount. This will be an amount that will satisfy the management of the International Monetary Fund,” said Sergei Storchak, Russia’s deputy finance minister. Support from Russia, China and Brazil is crucial to achieve the doubling of the IMF’s war chest the global lender is seeking. Europe and Japan already have pledged $320 billion. An international diplomat said that in all, emerging nations have lined up at least $100 billion.
These kinds of announcements never seem to mean very much, though these positive-ish headlines about bailouts and firewalls are usually good for a little short-term juice.
Note also too that the rebound in the market came not long after 11:00 AM Centreap European Time which is when this Reuters story first broke).