FXstreet.com (Barcelona) - European markets bounced up temporarily on Wednesday after two days of posting decreases and a negative opening. ECB's rumored purchases of Italian and Spanish bonds amounting to 2.000 million euro stimulated investors' optimism and caused the Euro to to pick up from fresh multi-week lows. The Euro was also affected by recent reports that UniCredit will ask the ECB for more funding for Italian banks, according to Reuters.
In Italy Mario Monti is preparing to announce the composition of his new cabinet. It is rumored that he will combine his duties as prime minister with the Finance portfolio. Monti hopes that by presenting the new government he will calm the markets.
In Greece, the government formed by Lucas Papademos will be subject to a vote of confidence today, which it is expected to survive without problems because, as Finance Minister Evangelos Venizelos believes, “It is a symbolic, political action.” The Greek PM however will need to quickly begin implementing painful reforms despite divisions in his coalition and amid continuing street protests.
Meanwhile, Herman Van Rompuy and José Manuel Durao Barroso revealed on Wednesday before the European Parliament a proposition to allow the EU to inspect the Member States' budgets and suspend their right to vote in case they do not fulfill all the required fiscal commitments. The proposition will be considered during the upcoming EU leaders' summit at the beginning of December
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