Spain

First State Investments' emerging market and Asia Pacific specialist Angus Tulloch tells Kyle Caldwell about the macroeconomic headwinds preventing him from taking a bullish stance on the region.

Spanish and Italian bond prices have continued their decline as G20 leaders told European politicians responsibility for the debt crisis lies with them.

The International Monetary Fund (IMF) has warned the world faces a credit crunch similar to that of 2008/09 as the euro crisis forces banks to cut their balance sheets.

The latest addition to Schroders' bond team has been adding Spanish government bonds across several portfolios in the view Spain is too big to fail.

Asian markets fell overnight after data was released showing foreign investment into China slowed for a fifth month in a row.

Worries over the health of sovereign nations in Europe - and in particular Spain - have pushed bond yields sharply higher during trading today, while equity markets are clinging on to gains following a strong start.

SPAIN

Yields on tranches of German debt fell below the amount paid by Japan for the first time ever mid-afternoon, as investors considered the likelihood of another round of stimulus in Europe.

The FTSE 100 has dropped 0.8% this morning as investors get their first opportunity to act on a disappointing US jobs report on Friday.

Europe's economic and financial affairs commissioner Olli Rehn has warned Portugal may need a fresh bailout within a year.