European markets closed up after recovering from a rumour that the Austrian government would not approve and expansion of the European Financial Stability Facility, the linchpin of the second Greek bailout.That wasn’t the first suspicious headline to shake markets today.
Here are the numbers:
FTSE MIB: 2.69%
Chatter about the possibility and desirability of a Greek default continued, with French President Nicolas Sarkozy saying that he will do “everything” to save Greece while former Argentinian central banker Mario Bjeter said, “Greece should default and default big.”
Downgrades of Credit Agricole and Societe Generale caused their stocks to fall initially, though Credit Agricole managed to make up losses and ended +1.22%. SocGen fell 2.88% and BNP Paribas plunged 3.93%.
U.S. Treasury Secretary Timothy Geithner also weighed in, ruling out the possibility of Lehman in Europe, and someone somewhere brought up eurobonds but was unceremoniously shot down by Germany.
American markets will likely be affected by any news generated by a conference call between Sarkozy, Greek PM George Papandreou, and German Chancellor Angela Merkel.
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