Markets Rally as France And Germany Pledge To Put Europe Out Of Trouble

October 11 00:00 2011

New York, October 11 ( – German Chancellor Angela Merkel and French President Nicholas Sarkozy have made a ground breaking announcement with regards to solving the Euro crisis. They have apparently been brainstorming all weekend and have come up with a pledge in front of world media which states that they will chalk out a plan to get Europe out of the financial mess it is currently in before the end of the month.

The world financial markets greeted this announcement with positive signals. Markets all over the world started rallying. The Dow Jones Industrial Average was up by 1.7% in almost no time. Also, in the Forex markets, the Euro rose 1.8% against the dollar after witnessing major crashes in the last week.

The Merkel-Sarkozy duo may have a tough task lined up for them given the fact that they have announced the Nov 3-Nov 4 deadline to unveil the plan. The European economies have been in dire straits and need immediate restructuring.  The media frenzy was creating a downward spiral which could have led to a Greek default which is almost certain to spread in to a pan European default.

This could be an attempt by the due to deflect media attention and buy time till November and get their act together.