Eurozone

Yields on Swedish government bonds have dropped to their lowest ever levels relative to Germany today as investors flee traditional safe havens amid the eurozone panic.

German Chancellor Angela Merkel helped lift markets further today after revealing moves towards "fiscal union" in Europe were afoot.

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.

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