Kid on christmas morning

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UPDATE: The IMF is proposing to boost its lending facility by $500 billion, according to Bloomberg, not by $1 trillion as previously reported.And the sugar rush is fading.

The Euro fell back to $1.2786, down from $1.2836 when the news first hit.

European markets and Dow futures gave back around half of their initial gains.

EARLIER: A report just hit the wire that the IMF has proposed boosting its lending facility by $1 trillion, according to Bloomberg.

The Euro jumped on the news to $1.2836 up from $1.2720 earlier this morning.

European markets are all trading higher, led by the Dax up 0.5%. Also Italian yields plunged after the report.

Dow futures are up 51 points from flat earlier.

A few caveats to this story: The Bloomberg report comes from an anonymous official. An IMF expansion would have to be approved by Congress. Also Sky News’ Ed Conway reported that the aim was to increase the lending facility to $1 trillion total, rather than a $1 trillion boost.

The news excited Jim Cramer, who tweeted: “IMF just proposes $1 trillion increase in lending.. That’s what’s needed, IMF stepping up to the table. Real heat!” and “This is the kind of thing that keeps happening whenever it gets dark out. IMF boost–now we know why $FXE strong…bonds strong”

Here’s a chart of the euro move: