Peripheral European nations Ireland and Portugal could be forced to head to Continent's bailout mechanism after their respective bond yields soared to the highest levels since the creation of the euro.
The UK's four major banks have passed EU stress tests, although five Spanish banks failed, the Committee of European Banking Supervisors (CEBS) said.
Hedge funds and asset managers will be caught by the EU-led crackdown on bankers' bonuses, it emerged last night.
Economic sentiment in Germany slid last week following signs the recovery is slowing, according to the Centre for European Economic Research (ZEW) in Mannheim.
Thames River's Peter Geikie-Cobb is looking to rebuild the US dollar exposure of his Global Bond fund to 75% over the coming month, having trimmed it to 50% in May.