Photo: Shandi-lee via Flickr
UPDATE: Markets and the euro have popped on Reuters reports on the contents of an EFSF document.European markets are still down slightly, U.S. futures slightly positive.
Reports via FT’s Christoper Adams:
Rtr: after buying bonds on secondary mkt, EFSF can sell them back on mkt, hold to maturity, sell back to issuing sovereign or use for repo
European Commission, ECB would prepare agreement with ez country in 1-2 days specifying how long secondary mkt purchases would take- RTR
EFSF to be able to buy bonds on secondary mkt if ez country makes a request – RTR citing guideline document
EFSF to be able to buy bonds on secondary mkt if ez coutnry has no bank solvency problems, has good borrowing costs record – RTR
Amount vailable for secondary mkt intervention by EFSF would be equal to remaining lending capacity of bailout fund – RTR citing document
Previously: The optimism seen earlier this week, that perhaps Europe was going to rescue itself with some kind of mega-deal over the coming weekend, seems to be fading.
The most robust solutions for the new, expanded, EFSF, seem to be getting shot down by politicians and lawyers.
So markets are selling off notably.
- France -1.5%
- Dax -1.5%
- Italy -1.7%
Europe also had a rough night. Hong Kong lost another 2%.
Futures in the US are basically flat at the moment.