Global markets are recovering as various media reports surfaced that Germany and France are planning a 30 billion euro Greece bailout.

March futures on the S&P 500 Index rose 0.28 percent and those of Dow Jones Industrial average rose 0.15 percent.

Major Asian indices closed up, with the Shanghai Composite gaining 1.18 percent while the Nikkei 225 gained 0.45 percent.

European indices held on to most gains, with the Frankfurt DAX up trading up 1.25 percent and the Paris CAC 40 up 1.02 percent.

The U.K. FTSE 100, up 0.44 percent, lags as its bank components struggled after HSBC (NYSE:HBC) reported full-year earnings that missed expectations. Its loan impairment charges were particularly disappointing.

Wall Street Journal reported over the weekend that a German-led European coalition may buy up to 30 billion euros of Greek debt. Greek officials expect to seal a deal by Friday.

Although German Chancellor Angela Merkel and other top officials continually deny that the country is making plans to bail out Greece, global markets have mostly held on to gains.

The cost of insuring Greek sovereign debt generally fell on Monday and the spread between the yield of 10-year Greek and German debt also tightened.

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