Eurozone

FIXED INCOME

GREEK DEFAULT

Standard & Poor's has increased its rating of Greece's sovereign debt by six notches, after efforts by its eurozone neighbours to keep it in the currency union.

A bet on the demise of the eurozone has caused sizeable losses for John Paulson, the hedge fund boss renowned for making millions from the US financial collapse.

Eurozone leaders have agreed a plan by the Spanish authorities to restructure four of its major banks.

Eurozone finance ministers have negotiated a rescue package for the rapidly deteriorating Greek economy following ten hours of intense talks in Brussels.

Henderson's Richard Pease expects improving economic indicators, combined with hedge funds putting their cash back to work in equities, will lift European markets towards the end of the year.

It has been a hectic year for investors, with the eurozone debacle driving core bond yields to record lows, while equity markets were buffeted by fears over China and the US.

A double-digit stock market correction will prove the wake-up call to spur policymakers into action on the eurozone crisis, and could prove the perfect time to buy European stocks, according to Justin Oliver.

Nouriel Roubini has warned the eurozone faces a 'depression' if policymakers do not relax tough austerity measures.