With financial turmoil creeping in the country and the borrowing rate of Italy towering above 7 percent, many small European countries are forced to hunt for help. The eurozone finance ministers are considering a financial aid package for the country. 17 ministers of the eurozone have quickly managed to raise adequate money in order to build confidence among the world markets that their currency won’t give up. The plan of crisis management for the 17 countries might succeed in dealing with the severe debt crisis. A powerful beginning of the U.S. shopping season and new hope for a strong solution to deal with Europe’s debt crisis throws stocks high enough.
The Asian stock markets boosted Tuesday with hopes that the Euro ministers are mulling over essential schemes, in order to get rid of the threatening debt crisis that might rip the euro currency union apart. In an overview of the Asian stock markets, Japan’s Nikkei 225 index was high 0.9 percent to 8,362.71. South Korea’s Kospi rose 1.5 percent to 1,843.08 and Hong Kong’s Hang Seng gained 0.4 percent to 18,101.68. Mainland China and Taiwan’s standards were high while that of Malaysia, Singapore and Australia chopped down. Oil prices followed equities moderately higher — benchmark rudimentary for January delivery rose by 49 cents to $98.70 per barrel listing in electronic trading on the New York Mercantile Exchange.
The panic about the disastrous financial meltdown of the 17 countries that use euro currency also relieved after it was reported that European minister are considering severe steps that were once believed as taboo. The other half of the meeting saw another plan, though no precise information has yet surfaced about the likely result of Dec. 9 summits of European ministers. The plan calls for the stable economies in the euro grouping to jointly sell bonds, known as Eurobonds. This will in turn provide aid to the most indebted members of the country.
Monday stocks gained a remarkable rise, especially in Europe, with 5% rise in the CAC-40 France. This resulted in unnoticeable gains on Tuesday, but provided with further confirmation of the hopes that the act of the European ministers will finally be put together in10 days time. Germany’s DAX was at 5,756 after a rise of 0.2%, while the CAC-40 fell a little to 3013. The FTSE 100 index of top British shares was high 0.1% at 5,320, while the euro rose by 0.2% bringing it to $1.3309.
The Italian prime minister Mario Monti quoted,“The feasibility of interventions by both bodies depends on making progress on institutional matters such as moving toward fiscal union, The euro summit of next week will be fundamental because further progress has to achieved on the governance of the euro zone.”
