Markets swing on Greece's mixed messages

Watch Richard Quest read the letter from Greece's PM
Watch Richard Quest read the letter from Greece's PM

Global markets are having trouble figuring out Greece right now.

Stocks jumped early Wednesday after the Greek government said it could accept much of a bailout package it threw out just days ago.

Germany's DAX and France's CAC indexes rose as much as 3%.

But both markets trimmed those gains to close about 2% higher after Prime Minister Alexis Tsipras urged Greeks to vote against the bailout terms in a referendum on Sunday.

Related: U.S. stocks rally after 'progress' in Greece

He believes a "No" vote will strengthen his hand in talks on a new rescue; European leaders say it will hasten the country's exit from the eurozone.

The euro slipped 0.4% against the U.S. dollar, buying $1.10.

dax july 1

Global stocks sold off earlier this week as uncertainty over Greece's future escalated and the country headed for the July 5 popular vote that could decide its fate in the eurozone.

In the first surprise move of the day, Greece's government broadly accepted the conditions attached to releasing more cash in a letter sent to European leaders and the International Monetary Fund late Tuesday.

European finance ministers were meeting Wednesday to discuss the Greek government's new stance.

Even if the about-face is given a favorable reception by the country's creditors, it won't signal the immediate end of Greece's financial crisis.

That's because the only mechanism for Europe to hand over rescue loans expired at midnight. And Greece defaulted on a payment to the IMF Tuesday.

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