Spain

The euro has slipped to an 11-year low against the Japanese yen as Spanish debt woes continue to weigh on the single currency.

European equity markets have slumped in afternoon trading as Spanish 10-year bond yields approach record highs once again.

Spain's 5-year bond yields hit a new euro-era high at a disappointing auction today as investors cast doubt on the country's ability to repay its debt.

After two years of intense negotiations and 19 crisis summits, EU leaders are still deeply divided over what action is needed to solve the eurozone sovereign debt crisis.

Investors are now paying to hold European Financial Stability Facility debt, after six-month t-bills sold at a negative yield at auction for the first time ever.

Guy Monson, CIO & managing partner at Sarasin & Partners, looks beyond the eurozone and identifies the other key themes that will affect investment decisions over the next six months.

European authorities are pushing Spanish banks to write off their preferred shares and subordinated bonds, in a move which could see small savers lose billions of euros.

Corporate credit fund manager Muzinich & Co. is preparing for a buying opportunity in the European high yield sector if Spain suffers further sovereign downgrades.

Invesco Perpetual's Stephanie Butcher has moved overweight Spain and added names from Ireland and Portugal to the European Equity Income fund, taking the view stocks are "too cheap" and investors are over-paying for core, defensive names.

Yields on 10-year Spanish government bonds are close to unaffordable, Spanish Prime Minister Mariano Rajoy has told his parliament ahead of this week's all-important EU summit.