Concerns remain whether France and Germany will be able to come to terms on the European Financial Stability Facility (EFSF).

Equity and currency traders around the globe are at a miss as to how to trade the markets. U.S. equity markets have been shaken up by a rare earnings miss by Apple but the biggest problem at the moment is increased volatility caused by Europe.

The Euro is erasing its gains made against the U.S. Dollar as investors continue to lose faith in the European Union’s ability to handle the debts and financial problems of its member countries, with France and Germany remaining one of the few saving graces of the area. But even France has its share of problems related to debt and liquidity at French banks.

One of the main issues at hand is that Germany and France seem to be unable to come to terms on an agreement on how the European Central Bank will use funds allocated for bailing out nations like Ireland and Greece.

The EFSF could wind up having to absorb over a trillion dollars in bad assets from banks throughout the Eurozone. The endowment of the fund is 440 billion Euros and can guarantee commitments up to 780 billion Euros as it currently stands.

U.S. equity markets continue their multiple percentage point swings as the fate of Europe remains undecided.