Eurozone

China's premier, Wen Jiabao, said the country is ready to help Europe through its current debt crisis, but is calling for Europe to recognise China as a full market economy.

Artemis' James Foster expects Greece will exit the eurozone within six months - and possibly as soon as December - with Europe forced to act because the Greeks are unwilling to tackle the crisis.

RBS expects Greece will experience a hard default this December in a move it says will cause "violent contagion" in global markets.

Fears over Italy's ability to push ahead with fiscal reforms have pushed bond spreads back up towards record levels as investors rush to safety once more.

Yields on short-dated Greek debt have hit a fresh eurozone-era high after the country announced a pause in bailout talks with the IMF.

NEARING CRUNCH POINT

ON BONDS

Finnish prime minister Jyrki Katainen has threatened to withdraw support for the Greek bailout unless granted security for its loans in the form of collateral, the Telegraph reports.

The last few weeks have seen unprecedented market volatility as investors take fright at the ongoing debt crisis in the eurozone and a series of weak economic data from the US.

French and German leaders are calling for a tax on financial transactions to raise more revenues as they respond to the euro debt crisis.