The FTSE 100 opened lower this morning despite recent positive economic data, as rumours of a Fitch downgrade of Italy weighed on markets.
S&P's latest raft of downgrades were largely priced into markets, but more worrying is its forecast of a high chance of a deep recession in the region, said Schroders' European economist Azad Zangana.
The financial crisis engulfing the eurozone took a fresh twist on Friday after Standard & Poor's cut the credit rating on nine eurozone countries, including France's prized AAA, and Greece's debt talks collapsed without agreement.
Swiss National Bank chairman Philipp Hildebrand will receive a CHF900,000 (£615,000) payoff as he leaves the central bank following a scandal over his wife's currency trades.
WHY GERMAN YIELDS COULD FALL FURTHER
Ten years on from the introduction of the euro, opinion is divided over whether the troubled single currency can survive another decade, especially in its present form.
Prime Minister David Cameron has left open the door to Britain giving billions of pounds of new support to the International Monetary Fund (IMF) in a move likely to infuriate eurosceptic MPs in his own Conservative party.