euro

Around 42% of hedge fund managers see the potential for a default or restructure by Italy and Spain, according to a survey.

Europe may see a ‘twin track' single currency emerge as the sovereign debt crisis unwinds, said Schroders' Richard Buxton.

The International Monetary Fund (IMF) today denied reports it is planning a £500bn rescue package for Italy and Spain.

European equity markets and the euro fell deeper into the red today as Germany failed to attract buyers to its latest government debt auction.

Global markets were spooked by Spanish bond yields spiking to near-critical levels, with many indices posting losses of more than 1% overnight, and the FTSE 100 opening 1% lower this morning.

Former prime minister Tony Blair has warned against any break-up of the eurozone as the region takes steps to deal with the most serious challenge it has faced since its formation.

European markets were slightly positive in early trading as new Prime Minister Mario Monti prepares to form a new government to lead the stricken country out of its debt crisis.

Eurozone leaders need to act within the next few days or it will be "game over" for the euro, warned Kames Capital's Phil Milburn.

Jim O'Neill, chairman of Goldman Sachs Asset Management, has warned the need for German-led fiscal integration in the eurozone would make it increasingly difficult for all countries to stay in the single currency.

The European Central Bank has made the unexpected move to cut interest rates by 25 basis points from 1.5% to 1.25%, as new president Mario Draghi moves to combat the crisis in Europe.