Chillin' out till it needs to be funded
Markets reacted abruptly to China’s welcoming comments for Angela Merkel in Beijing. China had made similar noises when Klaus Regling , the EFSF head had visited Beijing at the end of October three maonths ago but had made its reasons for non involvement very clear the next day. Euro hopes were however raised high as the Euro tried to cross 1.32 in the afternoon’s moves on China’s comment that is is considering greater involvement in bailing out its largest trading partner.
Chinese Premier Wen Jiabao’s comments however raised the Euro a mite to offer levels where china itself was selling off its Euro positions at 1.3190 according to Reuters Insider . The market again reacted like a chump of change going thru a messy divorce , selling off the Euro to below 1.313 . The off chance remarks by Wen Jiaboao in a meeting with Angela Merkel, would support the German hopes that the EFSF and ESM can be grown without more cash from their kitty and indeed from within the Euro. IMF’s 4 out of 7 dollars in aid are currently on loan to European nations