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Financial Markets Up On Italy, Greece Hopes

Traders on the floor of the New York Stock Exchange (file photo)

Traders on the floor of the New York Stock Exchange (file photo)

Global financial markets were rallying at the start of a new week on perceived optimism that new technocrat leaders in Italy and Greece may succeed in implementing the tough economic reforms needed to contain the eurozone debt crisis.

Italy's president on November 13 asked former European Commissioner Mario Monti to form a government, while in Greece the country's new prime minister, former central banker Lucas Papademos, will face a confidence vote on November 16.

Italy's longtime prime minister, Silvio Berlusconi, was forced to resign after the price Italy has to pay to borrow money rose to over 7 percent last week, the rate at which Greece, Portugal, and Ireland had to seek emergency rescue aid from their eurozone partners and the International Monetary Fund (IMF).

Italy is the eurozone's third-largest economy, and analysts have warned that European partners do not have the resources to bail it out if it fails to make payments on its debts.

compiled from agency reports