UPDATE: French Spokesman Denies Merkozy "Action" Today

A senior French government official told Reuters (via Zero Hedge) that German Chancellor Angela Merkel and French President Nicolas Sarkozy will “take action” in an announcement today on Greece.

According to the report, they spoke yesterday on how to calm markets unnerved by rumours of an imminent Greek default and subsequent contagion.

We’ve seen a number of these “big announcements” showing Merkozy’s dedication “to do what is necessary” to stem the sovereign debt crisis, but so far seen the duo present few tangible solutions to the eurozone crisis.

Markets seem to think something big might happen — all the big European markets are rallying, making up early morning losses.

UPDATE: Sarkozy spokesman Franck Louvrier now says that there will be no Franco-German action today, but that Sarkozy could speak after European Council Herman von Rompuy visits him in Paris today.

Markets are sharply down on that news. What a repeat of the rumour mill that crazed markets yesterday.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.