A dire German bond auction rocked markets overnight, with Japan's Nikkei index hitting its lowest level since April 2009 as fears deepened over the eurozone crisis.

The cost of insuring against a default by Bank of America reached a new high yesterday as investors' fears over US exposure to the European debt crisis deepened.

EUROPE ON THE BRINK

The US supercommittee's failure to agree a debt reduction plan means the country faces a second rating downgrade by the year end, an economist has warned.

The Federal Reserve plans to stress test six major US banks against market shocks, as part of an annual review of bank health.

Hungary has asked the International Monetary Fund (IMF) and the European Union (EU) for financial aid as its debt pile grows and its currency weakens.

Cazenove is planning to launch a European equity income fund for head of pan-European equities Chris Rice next year, as well as expand its bond fund range with a new portfolio for Peter Harvey.

T. Rowe Price has added a European High Yield Bond strategy to its fixed income range, managed by Mike Della Vedova.

Warren Buffett has warned European leaders are not doing enough to reassure markets they will do what it takes to solve the debt crisis, risking a run on the region's banks.

Speaking to investors today following the six-month results of his Fidelity China Special Situations trust, Anthony Bolton explained why the trust has struggled, with net asset value falling 29% over the six months to 30 September.