more-arw search

Good News for Markets Following EU Deal

Rebuilding euro zone stability could help markets globally.

Progress made by European leaders on the euro zone financial crisis could be contributing to improvements in the global economy, according to and BMC Software.

"Markets are starting to step in the right direction, with the European Financial Stability Facility (EFSF) increasing from $600 billion to $1.4 trillion, a significant move to strengthen the safety net in place for Europe's most troubled countries," the company said in a statement issued earlier this week.

The EquityMarkets and BMC said participation from China, the International Monetary Fund and other groups were helping to shore up the strength of the European deal, a fact that would also assist in maintaining markets at their current levels.

However, more recent developments in some of the troubled euro zone countries could create complications. Reuters reports that leaders cannot draft policies quickly enough to keep up with the changing markets, and uncertainty following Italian Prime Minister Silvio Berlusconi's ouster could also damage stability and lead to a more volatile trading environment. The region is also aiming to cap the chaos in Greece, and recently appointed Lucas Papademos, a former vice president of the European Central Bank, will oversee an interim cabinet for the country, according to the news outlet.