The market found support in emerging news from Greece that Prime Minister Papandreou is losing more support from his party as members defect and say they will not support his call for a referendum.

The euro and European equities rebounded as the Finance Minister Evangelos Venizelos leads the fight against the prime minister's surprise decision.

A number of Papandreou's PASOK MPs announced that they will not support his decision and that left the prime minister with the support of only 149 MPs in the parliament of 300.

This supported the market on the expectations that Papandreou may not survive the confidence vote on Friday and that might lead to his resignation and accordingly lead to the cancelation of the referendum and turning again to the EU option which will secure that Greece will not default and will remain in the euro area.