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Premature euro rescue talk buoys markets

Sep 27th, 2011 08:24 by News

27-Sep (Reuters) — Talk of beefing up the euro zone’s bailout fund lifted stocks on Tuesday but complicated the debate in Germany where Angela Merkel is struggling to rally her coalition behind her in aiding Europe’s weak economies and banks.

European shares rallied for a second day and safe-haven German bonds fell on reports that European policymakers were preparing more decisive action to tackle the bloc’s sovereign debt crisis by leveraging up the 440 billion euro rescue pot.

[source]

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