Reports that all countries that use the euro can get their credit rating downgraded deflated the morning rally in the stock market Monday. The Dow Jones industrial average closed up 78 points, giving back much of the previous point 167 get.
News reports in the evening standard
Stocks rose in the morning after the leaders of France and Germany called for a new Treaty to impose fiscal discipline in European countries. Government bond yields in Italy falls sharply after a new Government in Mario Monti unveiled sweeping austerity measures over the weekend. The show traders believe Italy is likely to default.