Eurozone

Key eurozone sovereign debt yields have fallen sharply after successful debt auctions and comments from ECB president Mario Draghi boosted investor confidence.

The yield on 1-year German bunds turned negative today for the first time ever, according to Bloomberg data, as the European Central Bank looks set to ramp up measures to fight the debt crisis.

Japanese bank Nomura has slashed assets linked to Italy by 83%, among other cuts, on debt crisis fears, Bloomberg reports.

Europe may see a ‘twin track' single currency emerge as the sovereign debt crisis unwinds, said Schroders' Richard Buxton.

US markets have opened 3% higher as investors pin their hopes on the latest promise of eurozone action in the shape of tighter budgetary controls.

The International Monetary Fund (IMF) today denied reports it is planning a £500bn rescue package for Italy and Spain.

Italy has been forced to pay record interest rates in a 10bn euro ($13bn; £9bn) auction of treasury bills.

ETFs

UK banks are coming under renewed regulatory pressure to curb dividend and bonus payments to prepare for a disastrous euro break-up.

Fears over the European debt crisis have escalated as a €6bn German bund auction fell flat today, showing investors are now demanding even higher compensation from an asset class previously seen as a safe haven.