Eurozone

Asian markets jumped overnight after the 'pro-bailout party took a narrow win in Greece's elections, but European indices saw an early rally disappear as Spanish bond yields spiked again.

GREECE

GREEK ELECTIONS

Spanish and Italian bond yields have continued to race ahead following the European Union's bailout of the troubled economy's banking system.

Jim Rogers, the chairman of Rogers Holdings, has described the bailout of the Spanish banking sector as "absurd economics" in a scathing attack on the European Union's approach to the crisis.

FUND MANAGER FOCUS

Oil futures have risen to a five-month high on hopes of stronger demand for fuel following the announcement of the Spanish bailout.

Marlborough's top performing small-cap manager Giles Hargreave has reduced his cash weighting from 10% to 5% to snap up shares trading at distressed valuations.

The single currency strengthened against the dollar today as Spain was granted a €100bn EU and IMF bailout to prop up its banking sector.

UK income funds face a new threat from the eurozone crisis if the pound continues to strengthen against the single currency, leading managers have said.