New series exploring one asset class each week
Financial performance in focus
Sam Morse, manager of the Fidelity European Values trust, examines the tailwinds for his favourite banking stocks.
S&P has downgraded Belgium's credit rating by one notch, to AA from AA+, expressing concerns about funding and market pressures.
Dexia, the bank bailed out by the French, Belgian and Luxembourg governments, loaned €1.5bn to two of its investors who then used the cash to buy shares in the company, it has been claimed.
Managers fear France could be the next European nation in line for a downgrade as it steps in to support beleaguered bank Dexia.
The eyes of the world's investors will be on the European financial markets this morning after a day in which eurozone debt fears saw the FTSE suffer its heaviest one-day fall in two months.