Eurozone

US treasury secretary Tim Geithner has warned the European debt crisis is bigger than just recapitalising the continent's banking systems.

TOUGH CHOICES AHEAD

The Belgian market regulator has halted trading of shares in Franco-Belgian bank Dexia as speculation mounts over the sale of its Luxembourg unit, the BBC reports.

The FTSE has opened 0.8% higher, building on yesterday's 3.2% rise, as markets hope policymakers are moving to combat the eurozone crisis.

German MPs have voted in favour of increasing the country's commitments to the European Financial Stability Facility as part of an expansion of the bailout fund.

OUR EFSF CONCERNS

Eurozone countries are divided over the terms of Greece's second €109bn bailout, with seven of the bloc's 17 members pushing for private creditors to accept a greater writedown on their Greek bonds, the FT reports.

European officials are reportedly working on a grand plan to save the eurozone involving a major bank recapitalisation, giving the bailout fund several trillion euros of firepower, and a possible Greek default.

HSBC European Growth manager Nick Dowell is continuing to overweight European banking stocks, suggesting it may not be possible to kick Greece out of the eurozone.

Jupiter's Guy de Blonay said markets may have to plunge a further 15% before "complacent" policymakers look to more QE.