ForexLive US wrap: Volatile session; Italy looking for a Chinese rescue

FT reports Italy approaches China about making significant investment in Italian debt China story prompts equity rally, ultimately sends Euro back to top of days range One dead in blast at French nuclear reprocessing facility WSJ: Greek loan tranche likely to be approved this month Greek 1-year yield reaches 122% ECB bought EUR 14 bln in PIG debt least week; total EUR 143 bln German FinMin Schaeuble: Have to consider all eventualities regarding Greek insolvency; not possible for Greece to leave euro zone under present treaties US's Geithner to attend EcoFin meeting in Poland on Friday US 10 year note yields rise 4 bp to 1.95% S&P 500 rises 0.7% in late-day reversal Gold falls $40 to $1815; oil up $1.50 to $88.75 A very, very volatile session in the US today, following volatility in the other regions as well. EUR/USD rallied to 1.3695 early in the day on hopes that the Troika would release the September Tranche of their Greek payment as scheduled. French bank fears then helped push EUR/USD off its highs and we reached 1.3556. Talk that China may come to the rescue of Italy boosted prices from the lows. sending EUR to 1.3625 before a retest of the lows played out. From there, equities caught a bid on the back of the Italian debt story and they squeezed higher very rapidly into the close. The S&P ended up 0.7% after being down something like 1.5% earlier... EUR/CHF fellas low as 1.2031 in NY today as the French banking fears, the move through 100% in Greek 1 year yields (ultimately reach 122%!) and a 98% probability of a Greek default as measured by CDS prices sent the market looking for trusted safe-havens once again. Afraid that's all I've got time for tonight. Best of luck out there!