Conflicting Rumors on Europe's Bailout Roil Markets

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Conflicting reports on Europe's bailout fund have caused quite a stir in markets. At around 2:30 p.m. on Tuesday afternoon, The Guardian's David Gow reported that France and Germany had agreed to put €2 trillion, an enormous figure, into Europe's rescue fund as part of a plan to resolve Europe's sovereign debt crisis which threatens European banks and governments. Gow wrote:

Senior EU officials admit the technical details remain to be settled ... They added: "We thought the [Greek] package of 21 July was a big step, but obviously it was not enough and now we're pretty confident that markets will say that these people really mean what they say and will ensure stability."

Though Gow reported that "the news cheered US investors," some market watchers were skeptical that his story was founded on false rumors. (Or, as Business Insider's Joe Weisenthal tweeted, "Naturally, Analysts peeing on Guardian rumor.") 

Thus did the Dow Jones tweet shortly before markets closed at 4 p.m. their own report from an anonymous source saying The Guardian's report was "totally wrong," following up a few minutes later to say that the €2 trillion bailout figure was "simplistic." Almost immediately, the Dow dropped 90 points. So the basic takeaway, we're not any clearer on what kind of bailout Europe's leaders might agree on this week than we were this morning.

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