The IMF has denied the Nikkei report. The Dow Jones Industrial Average rose 46.2 points, or 0.3%, to close at 12,196 after losing 89 points at the session's low due to the potential for further disappointment regarding Europe's debt plans. The S&P 500 rose 2.5 points, or 0.2%, at 1261 and the Nasdaq ended 0.3 points lower at 2649. Earlier in the trading session, negative comments from a German official spooked investors hoping for significant progress on Europe's debt problems at a summit later in the week. Reports cited a German official saying that leaders may take until Christmas to agree on a new treaty that encourages closer political and economic ties between 17 countries using the euro. Meanwhile, on the upside, some economists expect the European Central Bank to cut rates again on Thursday. Furthermore, some market participants see the dire situation in Europe as strong incentive for officials to deliver substantial results at their meeting in Brussels on Thursday and Friday. Leaders are expected to further their discussions on the possibility of having a second bailout fund instead of working to boost the existing rescue fund. Putting further pressure on European Union leaders to act quickly to resolve the debt crisis was rating agency Standard & Poor's negative outlook on the region. The agency said Wednesday afternoon that it has placed the ratings of some the largest banks in the eurozone on its negative outlook list and that similar actions will soon take place for other banks in the single-currency bloc. This follows S&Ps warnings earlier this week about a possible debt downgrade of 15 eurozone nations as well as the region's bailout facility itself.
NEW YORK (TheStreet) -- Stocks rebounded at the markets close on rumors that the G20 group of major economies were planning a $600 billion lending facility with the International Monetary Fund to stem the European debt crisis.
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