In the last 45 minutes of trading on October 4, the US stock market shot up almost 4% on a rumor that France and Germany would talk about a plan for the Euro debt crisis. Since then European leaders have met several times to distribute “hopium” to observers, but nothing of substance. Despite the lack of substance, the US market has risen almost 16% since the intraday low on October 4.
Today, the G-20 closed with no plan and little hope for one. The markets’ reaction? Yawn. Mr. Market is an unusual animal.
European Union Leaders Emerge With Little From G-20
By CHARLES FORELLE and
Of THE WALL STREET JOURNAL
CANNES, France — The European Union had hoped to come to a meeting of the Group of 20 large economies here with a grand plan to rescue the euro zone from its debt crisis and leave with the firm support of its international peers.
Instead, it departed the two-day summit Friday with precious little to show. No G-20 country committed to help seed the euro zone’s bailout fund, and the nations resolved only to continue talking about providing additional firepower through the International Monetary Fund.
Meantime, Greece’s political maelstrom swirled, shaking up the summit’s agenda. Friday afternoon, Prime Minister George Papandreou was holding on to his office by a thread ahead of a midnight no-confidence vote.
One step emerged, but it was small: Italy, the focus of substantial worries in European debt markets, agreed to permit the IMF to monitor its progress with fiscal reforms.