In addition, euro-zone members would likely have to take a large hit on governmental and central banks' loans to Greece.

WSJ: Europe Girds for Greek Exit

The European Central Bank's move this week to extend liquidity to euro-zone banks for three years also pleased investors.

WSJ: U.S. Stocks Hit 5-Month High

Market participants agree that banks in many fiscally stressed euro-zone countries are relying on the central-bank loans to stay afloat, although the situation in Spain has become the focus in the past month.

WSJ: European Banks��Large and Small��Rely on ECB

For most of the past year, the European Central Bank (ECB) has made vast quantities of cash available to euro-zone banks at a fixed rate of 1%, which in turn has pushed down mortgage rates.

ECONOMIST: Rigidities in the labour market make recovery even harder

The euro's strength has followed what appears to be the receding threat of a euro-zone breakup, thanks to pledges from the European Central Bank to stop speculative runs on the region's banks and governments.

WSJ: Euro's Recovery Not Without Pain for Some

There is now an international consensus on the measures needed to halt the immediate crisis: Massive bond buying by the European Central Bank, the direct recapitalization of banks by bailout funds and the creation of common euro-zone bonds.

WSJ: France Is Biggest Obstacle to Solution

The European Central Bank is barred from lending to governments (though it is doing a lot to sustain euro-zone banks).

ECONOMIST: Charlemagne