Germany has refused to give any ground on Europe's rescue machinery despite the escalating political and economic crisis across much of the eurozone periphery, guaranteeing a bitter clash with EU partners at a crucial summit in Brussels today.
The dollar rose against major currencies yesterday following more upbeat US economic data, while the euro took a beating after Moody's placed Spain's ‘Aa1' credit rating on review for a possible downgrade.
Templeton's Mark Mobius believes this year will see record inflows into emerging market funds.
PIMCO's co-CIO Bill Gross has poured $4.4m (£2.7m) of his own money into five municipal bond funds run by the group in anticipation of a rally, Bloomberg reports.
The EU plans to make private lenders cover the losses of any future eurozone debt crisis, which will have a knock-on effect on government bond yields.