The early returns are positive on what is arguably the most important week in Europe since at least 1999, when the euro was officially introduced.
Global stocks rallied and European sovereign debt yields tumbled Monday on hopes a big deal will emerge from the critical EU summit meeting in Brussels on Dec. 8-9.
In recent trading, the Dow was up 1.4% and Italian 10-year debt yields were below 6% vs. last week's peak of 7.89%. (Update: The rally effort hit a snag around 2 p.m. ET when The Financial Times reported S&P is planning to put the AAA credit ratings of Germany, France, the Netherlands, Austria, Finland, and Luxembourg on watch for potential downgrade.)
Ahead of the EU summit, Italy on Sunday adopted a new 3-year package of austerity measures that include pension reforms, higher taxes, spending cuts and tax breaks for companies that increase hiring. In total, the $40.2 billion package is equal to about 1.9% of Italy's GDP.
On Monday, Germany's Angela Merkel and France's NicolasRead More »from Europe’s Big Week: Early Returns Good, Big Challenges Remain