Eurozone

The value of Portuguese bonds has dropped and yields have widened to record levels, as concern mounts over EU leaders' failure to resolve the Greek debt crisis.

Financials still under pressure from unfinished business in the eurozone and the threat of downgrade for banks

Yields on Greek 10-year government bonds have rocketed to record levels as fears rise the nation could default on its debt repayments, the FT reports.

European governments yesterday discussed the prospect of a fresh multi-billion euro bailout for Greece - just a year after committing €110bn - in a bid to calm the markets and stabilise the region's currency.

The economies of the 17 countries in the single currency block grew 0.8% in the first three months of 2011, up from 0.3% in Q4, figures released today reveal.

The eurozone was a crowning achievement for many Brussels europhiles, of which they no doubt felt intense pride. As history shows again and again, it came before a fall.

Spain's €3.4bn sale of long-term debt has dampened fears the eurozone country could be next in line to need a bailout.

A record monthly increase in eurozone inflation unexpectedly sent the annual rate to a 29-month high in March, strengthening expectations that the European Central Bank will tighten monetary policy further this year.

HAVE RISK ASSETS TAKEN FLIGHT?

Jean Claude Trichet, the president of the European Central Bank, has defended yesterday's 25 basis point hike in interest rates as good for the eurozone, as EU leaders prepare for talks on the bailout of Portugal.