The News Heard around the globe

The International Business Times, reported the following this morning.” Asian shares jumped and the euro firmed Monday on hopes that Europe will come up with some concrete steps this week toward activating a crucial euro zone bailout fund and reports that the International Monetary Fund is considering helping Italy.”

This morning the euro rose 0.6 percent to $1.3322 after Italian daily La Stampa said the International Monetary Fund is preparing a 600 billion euro ($794 billion) loan for Italy without saying where it got the information. The IMF money would give Italy’s Prime Minister Mario Monti 12 to 18 months to implement policy changes without having to refinance the country’s existing debt, the Italian daily reported. Monti could draw on the money if his planned austerity measures fail to stop declines in Italian debt, La Stampa said.

The story began to spread around the globe within mintues, social net-workers were tweeting and online news centers were spreading the artilces. Reuters reported on Monday morning that contact between the IMF and Rome have intensified recently, but that it was unclear what support Italy could be offered.

In a short time, IMF chief Christine Lagarde, publicly denied the story and reiterated that the IMF was not negotiating with Italy and reiterated her earlier statement that the IMF only had an emergency fund of 285billion euro, not nearly enough to help, Greece, Italy, Spain and Portugal.

Investors are hoping for any news, especially good news, their nerves are shattered and raw and the slightest indication that the EU has a way to avoid multiple defaults, any signs of guidance or policy would boost the markets.

European markets were already responding the Black Friday news from the US, but these numbers are not firmed, all weekend the reports ranged from 6% to 16.% sales increases. Internet retailers were singing joy and claiming as much as a 35% increase. It didn’t take much news for weary traders to jump back into the markets.

The Italian Government today sold inflation-linked bonds  at a  yield of  7.3 percent, the second time in a week that the Treasury auctioned debt above the 7 percent threshold that led Greece, Portugal and Ireland to seek bailouts.  The false rumors regarding the IMF assured a successful sale. Demand was 2.16 times the amount sold.

Watch the markets closely to see investors reactions to the retraction of the news. The euro, should trade lower later today, as the dollar surges based on retail sales in the US.

are hoping for any news, especially good news, their nerves are shattered and raw and the slightest indication that the EU has a way to avoid multiple defaults, any signs of guidance or policy would boost the markets.

European markets were already responding the Black Friday news from the US, but these numbers are not firmed, all weekend the reports ranged from 6% to 16.% sales increases. Internet retailers were singing joy and claiming as much as a 35% increase. It didn’t take much news for weary traders to jump back into the markets.

The Italian Government today sold inflation-linked bonds  at a  yieldof  7.3 percent, the second time in a week that the Treasury auctioned debt above the 7 percent threshold that led Greece, Portugal and Ireland to seek bailouts.  The false rumors regarding the IMF assured a successful sale. Demand was 2.16 times the amount sold.

Watch the markets closely to see investors reactions to the retraction of the news. The euro, should trade lower later today, as the dollar surges based on retail sales in the US.

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