nikkei 225

US stocks saw their worst day so far in 2012 yesterday as Greek debt swap concerns and fears over global growth put pressure on markets.

European markets edged lower this morning, echoing falls across Asia overnight, as investors showed caution over the outcome of the Greek debt swap deal.

Asian markets were boosted overnight by speculation the Chinese government is poised to begin loosening its monetary policy in response to the impacts of the eurozone debt crisis.

Update: European shares fell today - mirroring overnight losses in Asia and the US - on continued concerns about the eurozone debt crisis, with German Chancellor Angela Merkel saying Europe faces its "hardest hour" since World War II.

US and Asian markets were mixed overnight as fears Italy could become the next victim of the eurozone crisis grew.

London and European stock markets edged up as the G20 talks in Cannes continued on Friday, with Royal Bank of Scotland boosting the UK after climbing 5% on its profits update.

London's leading share index has rebounded from yesterday's turbulent session, with investors finding value in depressed bank stocks.

The UK's index of 100 leading shares fell 2.76% to below 5,000 this morning, as global markets showed no signs of shaking off fears the West is heading back into recession.

The FTSE 100 is in the black in early trading after falling 1% on opening, after S&P's downgrade of US debt sparked a further share sell-off across the globe.

Japan's manufacturing sector has beaten expectations following March's earthquake and tsunami, said Bill O'Neill, chief investment officer of Merrill Lynch, who sees further upside in Japanese equities.