Markets are surging after rumours and then confirmation surfaced that EU leaders will hold a second summit next week to talk about a solution to the eurozone crisis.Now the news is that EU leaders will agree to an “ambitious” crisis solution at that second summit.
Markets have made a huge turnaround on the news. Down around 1% before, the S&P 500 and the Dow have both turned positive.
Optimism that EU leaders would reach a solution faded this week, after reports surfaced that EU countries — in particular, Greece and France — are still having trouble agreeing on how to tame the sovereign debt crisis and stop contagion from spreading across the eurozone.
Pressure has been mounting on them to come up with a plan by Sunday’s summit of EU leaders, and doubts have been mounting that they could do it in time.
A second EU summit gives them more time to make good on this promise to get their act together. Hopes are high that after spending two whole days debating and politicking, they will be able to accomplish something significant.