Anyone reading the details of the agreement forged this morning at the European Union summit shouldn’t be surprised that financial markets are offering only a lukewarm response.

In addition to a “fracture” in the union as the U.K. refused to be bound by possible financial industry regulations (e.g., a transaction tax that could hurt profits at its big banks), the agreement does nothing to shore up credit markets over the near term, most analysts now pointing to the European Central Bank to fill that role despite the clear message yesterday by ECB President Mario Draghi that it had no intention of doing so.

It’s clear that the time bombs below (from this item last week) have not been defused.

The hope exists that new involvement by the International Monetary Fund might result in providing more support to wobbly credit markets where Italian and Spanish bonds continue to be  under pressure, but, Asia is still reluctant to partner with anyone in an effort to save the euro and, at this juncture, who could argue with them?

The latest headline at the Wall Street Journal reads EU Fiscal Pact Leaves ECB in Focus($) and it seems clear that markets now expect the ECB to take bolder action, despite what Draghi said yesterday. Absent that bolder action, this deal appears to be a dangerous kick of the can down the road in Europe.