Europe

EUROZONE DEBT DEAL

Multi-asset veteran David Jane is running a bias towards gold and index-linked bonds following the resolution to the eurozone debt crisis, warning the move by EU leaders will stoke inflation.

European countries have agreed a deal to resolve the region's debt crisis which will include Greek bond holders taking a 50% haircut and see the eurozone bailout fund increased in size.

Eurozone optimism has buoyed markets this afternoon with almost all major indices in positive territory.

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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.

Emerging market currencies fell sharply during September after holding up pretty well through August. Developing market exchange rates even lost ground against the euro, despite Europe being the focus of market fears.

A decision - scheduled for Sunday - on whether to boost the eurozone's €440bn rescue fund has been delayed due to fresh disagreement between France and Germany about how to address the debt crisis.