Mon, May 28, 2012, 6:54 PM EDT - U.S. Markets closed for Memorial Day

SUPPORT FOR EURO: China's central bank governor, Zhou Xiaochuan, expressed confidence in the euro in an appearance Wednesday with visiting European Union leaders and said Beijing will keep buying the debt of European governments and encourage its companies to invest in Europe.

THE BACKGROUND: Chinese leaders have repeatedly expressed support for Europe, China's biggest export market, but have given no sign they would do more than continue to invest in the safest European government bonds.

THE ISSUE: European leaders are looking to China for a possible contribution to the continent's bailout funds from its $3.2 trillion in foreign reserves. Greece is seeking an extra €130 billion ($171 billion) in new rescue loans.

 

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